Harris Private Bank, part of BMO Financial Group, released a report which found that, while incomes in the U.S. rose slightly in June 2012, consumer spending stagnated, suggesting Americans are using their earnings to increase their savings and pay down household debt. the report also revealed that:- Americans are now taking on less debt than they did a decade ago
- Consumption, which accounts for more than two-thirds of domestic economic activity, was unchanged in June, falling short of economists’ predicted 0.1 percent increase
- Income rose 0.5 percent for the month, pushing the nation’s savings rate to 4.4 percent – its highest level in a year
- The number of jobs created from April to June this year was about one-third of those created between January and March 2012
- U.S. savings rate is at its highest level in a year at 4.4 percent
- Americans are using their earnings to increase savings and pay down debt
SOURCE: BMO Financial Group
So, what do you think ?