The Savings Bugbear.

The article discusses consumer spending in the U.S. Amid an economic recession in April, 2009, some economists predicted that the U.S. savings rate could grow from 4% to beyond 8%. By February of 2010, though, that rate had fallen to 3%, and during the first quarter of 2010 consumption increased by 4%. Alan Levenson of T. Row Price cites as contributing factors an improving job market and a reduction in consumer debt service that has freed up cash for spending. Still, Dana Johnson of Comerica Bank suggests that vulnerability in the housing market could exert downward pressure on consumption.