U.S. Households Lifting Economy After Being Stung by Prices Last Year

The U.S. household sector is the key driver of growth in the economy, and it is showing signs of strength after being stung by inflation last year. The latest data on personal income and spending, released today by the Commerce Department, show that households are boosting their spending and saving at a solid pace.

Personal income rose 0.4 percent in February, following a 0.3 percent increase in January. Wages and salaries, the largest component of personal income, increased 0.3 percent in February after rising 0.2 percent in January. Private wages and salaries, which exclude government workers, rose 0.4 percent in February.

Inflation has been a big issue in the past year, but U.S. households are starting to feel the sting less and show signs of increased spending. This is good news for the economy, which has been struggling to gain traction.

There are a number of factors that contribute to inflation, such as the cost of living, cost of goods, and wages. It’s important to monitor these factors so that you can make adjustments to your budget accordingly.

If you’re looking for ways to save money and keep your budget in check, be sure to read our blog on 5 Tips to Combat Inflation.

Slowing inflation, pay raises and state tax cuts have lined up to lift consumer purchasing power, fortifying spending and economic growth at a time when many analysts were predicting a slowdown or even recession.

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U.S. Households Lifting Economy After Being Stung by Prices Last Year