Seeking Alpha

Atle Willems, CFA's  Instablog

Atle Willems, CFA
Send Message
Atle Willems, CFA, is an equity investor with a long-term view investing in undervalued listed shares with solid operational track records and sensible balance sheets. He holds a master's degree in finance from Nottingham University Business School, a bachelor's degree in business... More
My company:
Liabridge
My blog:
EcPoFi - Economics, Politics, Finance
  • The U.S., The Consumer Spending Nation 0 comments
    Mar 6, 2013 11:26 AM

    Following a large increase in personal income and savings in December last year, the U.S. consumer quickly returned to its old spending habit of spending nearly all disposable income in January as the personal savings rate for the month dropped to 2.40%.

    The personal savings rate briefly hit 6% plus during the last couple of months in 2008 and in January 2009 (during the "credit crunch"), but it soon returned to a level below its long term average since 1973 of 6.36%. Since 2010 the average personal savings rate is now a dismal 4.37%.

    The U.S. consumer, and hence the U.S. economy (as consumer spending represents about 70% of GDP), is a fragile one indeed and is clearly dependent on higher incomes and more credit to increase spending further. The buffer for a rainy day is small indeed.

    (click to enlarge)

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: Macro View
Back To Atle Willems, CFA's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.