Incomes were up in October
Personal incomes rose in October by 0.4%, according to the Bureau of Economic Analysis. Personal income increased by $48.1 billion in October, while disposable income rose by 0.3% or $30.2 billion in the same period.
Despite having more income, consumers were being somewhat cautious with spending rising only by 0.1% or $8.2 billion. The uncertainties surrounding Europe, high unemployment, and here in Congress are likely weighing on the minds of consumers, for whom savings and retiring debt are new priorities.
Economists will be looking next at Black Friday, one of the biggest shopping days on the calendar. Retailers are dropping prices more steeply this year, in anticipation of more cautious and bargain-seeking customers.
Walmart is actually reintroducing layaway for the first time in many years to increase the competitiveness is the shopping season leading to Christmas.
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