Americans spending less, saving more

Americans cut back on spending by 1% in December, and increased personal savings by 3.6 %, in response to concerns about job security and economic stability, according to a Department of Commerce report released today.
FEB 02, 2009
Americans cut back on spending by 1% in December, and increased personal savings by 3.6 %, in response to concerns about job security and economic stability, according to a Department of Commerce report released today. Spending fell $102.4 billion, a steeper drop than the $77.8 billion loss in November. Personal income fell $23.5 billion last month, The personal savings rate has been steadily increasing since the 0.8 % growth rate in August, the report showed. The accelerating contraction of the manufacturing industry could be behind the drop in spending and personal income, according to the Institute for Supply Management. The Washington-based group keeps track of factory activity and creates a factory index based on productivity. Although the factory index for last month rose to 35.6 from a December reading of 32.9, the manufacturing market is still suffering; any number below 50 indicates contraction.

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.