US recovery fears grow on consumer money worries
The financial squeeze on US consumers was underlined by figures that kick off a critical week for the world’s largest economy.
By Richard Blackden
30 Aug 2010
Americans’ disposable income fell last month for the first time since January, according to a report on Monday from the Department of Commerce. After taking taxes and inflation into account, average incomes across the country dropped 0.1pc.
While separate figures showed that heavy discounting by car dealers helped consumer spending climb a stronger-than-expected 0.4pc, the picture of a cash-strapped consumer will do little to ease the fear in financial markets that the recovery is poised to lose momentum over the rest of the year. The S&P 500 ended the day down 1.5pc at 1,048.92.