An article posted in Forbes, on Monday, stated that “incomes rose for the sixth time in seven months, boosting household finances and potentially providing fuel for greater future spending.” This would be hopeful news for those who have been suffering with the impact of the faltering economy over the past year but oddly enough the amount of money spent on goods declined.

The Commerce Department stated that wages and salaries rose 0.5 percent last month. But, according to Christopher S. Rugaber, “consumers haven’t been driving the current recovery. Instead, it has depended more on business spending and exports. In the four quarters following the steep 1981-82 downturn, consumer spending rose by an average of 6.5 percent per quarter. By contrast, even as the economy has grown for the past three quarters, consumer spending rose an average of only 2.5 percent per quarter.”

The economy has improved over the past three quarters. Yet, consumers remain cautious in the face of high unemployment, limited credit and a declining housing market. If consumption continues to be restrained, the economy may not rebound fast enough to create new jobs and rapidly affect a decrease in the 9.7 percent unemployment rate.

If you have any questions, please feel to contact me without obligation. I am here to help. Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.