Spending down despite great economic numbers

3 years 7 months 5 days ago Friday, March 13 2015 Mar 13, 2015 Friday, March 13, 2015 11:19:00 AM CDT March 13, 2015 in News
By: Michael Doudna, KOMU 8 Reporter

COLUMBIA - A good jobs report and a increase in wages usually means a booming economy; however, one thing is missing, consumer spending. 

This is the third straight month consumer spending dropped in the United States, and the news came as a surprise to economists. Normally with a strong jobs climate, an increase in wages correlates with an increase in spending. Economists are blaming the unexpected fall in sales on the weather. Some economists said the extremely cold winter caused people to stay inside and save instead of go on a spending spree. 

The month drop in sales is the first time this has happened since 2012. Economists originally projected a retail sales increase of .3 percent. However this is the first time this millennium where the economy has seen positive job and wage growth, while seeing a drop in retail. 

Not all industries have felt the pain. Columbia Appliances said spending is up, especially compared to last year.

According to Peter Mueser, an economic professor at MU, the lackluster sales numbers could be a result of the 2008 recession. Mueser said a couple positive reports have not restored faith in the economy for a lot of people. According to Mueser, wages have not increased enough in recent months for there to be a large increase in discretionary income. This combined with a distrust in the stability of the economy led to another drop in spending.

It's not like the money is disappearing. According to different reports people are saving more money than they have in the past. Even with lower gas prices, it seems people are putting that money into savings, rather than spending. 

According to the report, retail sales have been the hardest hit. 

More News

Grid
List
CALLAWAY COUNTY - One person was killed in a helicopter crash east of Fulton, according to the Callaway County Sheriff's... More >>
11 minutes ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 4:58:00 PM CDT October 17, 2018 in News
PANAMA CITY, Fla. - A former Missouri woman, now living in Florida's panhandle, said Wednesday she is experiencing the "catastrophic"... More >>
1 hour ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 3:41:00 PM CDT October 17, 2018 in News
(CNN) -- A white woman has been fired after video emerged of her confronting and blocking the entry of a... More >>
1 hour ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 3:23:00 PM CDT October 17, 2018 in News
JEFFERSON CITY – Robert Pinhero created a GoFundMe page and is recruiting drivers to help get voters without a car... More >>
2 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 2:58:00 PM CDT October 17, 2018 in News
Cole County – From oil-dripping trucks to ones without seatbelts, Cole County Fire District officials say there's a pressing need... More >>
2 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 2:38:00 PM CDT October 17, 2018 in News
KINGDOM CITY - Eight people were arrested after the Callaway County Sherrif's Office found 3.5 pounds of methamphetamine, about one... More >>
2 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 2:23:00 PM CDT October 17, 2018 in News
(CNN) -- At least 92 people in 29 states have been infected with a strain of multidrug-resistant salmonella after coming... More >>
3 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 1:11:43 PM CDT October 17, 2018 in News
JEFFERSON CITY (AP) — In ads and speeches, Democratic U.S. Sen. Claire McCaskill is pounding Missouri voters with a single... More >>
4 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 12:19:00 PM CDT October 17, 2018 in News
JEFFERSON CITY - A multi-vehicle crash sent one man to the hospital with injuries right before the Wednesday morning commute.... More >>
5 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 11:42:00 AM CDT October 17, 2018 in News
JEFFERSON CITY- The man prosecutors accused of killing Lincoln University student Charon Session pleaded not guilty Wednesday morning. About... More >>
6 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 10:54:00 AM CDT October 17, 2018 in Top Stories
COLUMBIA (AP) — The University of Missouri had to toss out giving its Nobel Prize winning scientist a parking space... More >>
6 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 10:24:00 AM CDT October 17, 2018 in Top Stories
DES MOINES, Iowa (AP) — No winning lottery ticket was sold for the latest Mega Millions drawing, meaning the estimated... More >>
6 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 10:14:00 AM CDT October 17, 2018 in News
COLUMBIA - The Columbia Police Department is looking for a suspect after an armed robbery at a convenience store in... More >>
7 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 9:32:00 AM CDT October 17, 2018 in Top Stories
COLUMBIA- A new mobile pantry location through The Food Bank for Central and Northeast Missouri will open Wednesday afternoon providing... More >>
10 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 6:27:00 AM CDT October 17, 2018 in Top Stories
LADDONIA—The Community R-6 School District is the second district to get new beef options added to its school menu. The... More >>
10 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 6:13:00 AM CDT October 17, 2018 in Top Stories
COLUMBIA - The Columbia Police Department investigated a shots heard call on Tuesday evening. The incident happened at the... More >>
19 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 10:03:00 PM CDT October 16, 2018 in Top Stories
COLUMBIA - The Columbia Neighborhood Watch recently secured funding for next year. The Columbia City Council awarded them this money... More >>
20 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 8:17:00 PM CDT October 16, 2018 in News
COLUMBIA – Burrell Behavioral Health introduced a medicine-first approach to its facilities in Missouri’s central region to help clients with... More >>
22 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 6:40:00 PM CDT October 16, 2018 in News
Columbia, MO
Broken Clouds 64°
6pm 55°
7pm 52°
8pm 49°
9pm 47°