Categories: Retirement Planning and Investing

Consumer Spending in U.S. Increases More Than Forecast

Consumer Spending in U.S. Increases More Than Forecast (Bloomberg)

U.S. consumer spending climbed more than forecast in December, even as incomes stagnated, the Commerce Department reported Friday. The findings show new jobs are needed to boost economic expansion. Household purchases rose 0.4 percent, after a 0.6 percent gain the prior month that was larger than previously estimated. The median projection of 81 economists in a Bloomberg survey called for a 0.2 percent rise. Incomes were unchanged, dropping the saving rate to the lowest level in almost a year. The report follows data Thursday that showed household spending rose in the fourth quarter at the fastest pace in three years, helping the economy overcome the fallout from the U.S. government shutdown. At the same time, absent bigger gains in pay, Americans probably will struggle to sustain the pickup into early 2014.

Exclusive The Retirement Tax Bomb: How to Defuse It Before It's Too Late

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.