Americans Paying More For Goods, Saving Less


The latest economic indicators continue to point toward a sluggish recovery.

The U.S. Commerce Department reported this morning that American workers' income barely grew in February and the savings rate dropped to its lowest point in more than two years.

On the bright side, spending is up. Consumer spending rose 0.8 percent last month, double that of January. Part of the increase was because Americans aren't necessarily buying more items, they are simply paying more. As an example, the national average price for a gallon of gas was $3.92 on Thursday. In 11 states, the price was more than $4 per gallon.

Americans are putting less in the bank; the savings rate dropped to 3.7 percent of after-tax income in Feburary, its lowest level since August 2009.

Economists are now anxiously awaiting new job numbers. The economy has added an average of 245,000 jobs per months from December through February. The nation's unemployment rate - 8.3 percent - is the lowest in three years.