I read this Associated Press story with interest Tuesday. It announces “troubling signs” for the economy.
WASHINGTON — Americans cut their spending in June for the first time in nearly two years after seeing their incomes grow by the smallest amount in nine months. The latest data offered a troubling sign for an economy that is adding few jobs and barely growing.
So, what are the “troubling signs (emphasis mine)?”
Consumer spending dropped 0.2 percent in June, the Commerce Department said Tuesday. It was the first decline since September 2009.
… and …
Incomes rose 0.1 percent, the smallest gain since September. Many people are also pocketing more of their paychecks. The personal savings rate rose to 5.4 percent of after-tax incomes, the highest level since August 2010.
So if the cloud is the state of our abysmal economy, the silver lining is that Americans are getting their own financial houses in order.