Consumer spending rose slightly in May, as Americans remain reluctant to open their wallets amid a slow economic recovery.
I'd hardly classify a personal consumption to income ratio at 84.6%, slightly off the all-time high of 85.1% in March, as reluctant to spend. Spend-a-holics at the expense of savings comes to mind.
The key to any economic recovery, something understood by the Chinese, is investment in future plant, production, and equipment. It's the I of GDP = Consumption + Government + Investments(I) + (Exports - Imports) that increases future GDP.
Personal Consumption As A % of Personal Income:
Source: finance.yahoo.com
