Hidden Strength In Household Income And Savings

With the personal savings rate down to a meager 3.6% in April and running close to its historical lows, many observers have argued that consumers simply do not have the capacity to expand spending very much in the months ahead. Economist William C. Melton of IDS Financial Services Inc. claims, however, that household spending power is greater than is appreciated because savings have been understated in an important sense.

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