Tag Archives: consumer spending

The notion that consumers will help lead the economic rebound received a stark rebuttal Friday: American families are being squeezed.

Workers saw their inflation-adjusted weekly wages fall 1.6 percent last year — the sharpest drop since 1990 — even as consumer prices rose only modestly.

Families’ spending power sank as a result. Slack pay and scarce job growth are slowing consumer spending, along with tight credit and a rising savings rate. That’s hindering the economy’s ability to mount a strong recovery . . . read more Read More