does this make sense to you?

Parent Cafe
1

<p>

[quote/]
AP
Incomes Fall but Spending Increases
Friday June 1, 8:50 am ET<br>
Consumers’ Incomes Fall in April, but Spending Increases </p>

<p>WASHINGTON (AP) – Consumers’ incomes dipped in April but that didn’t stop them from spending briskly. The Commerce Department reported Friday that personal incomes fell by 0.1 percent in April, following a robust increase of 0.8 percent in March.
Consumers’ spending – a key ingredient to a healthy economy – rose by a strong 0.5 percent in April, following a 0.4 percent gain in the previous month.</p>

<p>The spending figure was stronger than the 0.4 rise economists were expected. But the incomes figure was weaker; economists were calling for a 0.3 percent rise.

[quote/]
</p>

<p>How could you have an increase in spending when the income is dipping?</p>

2

<p>Uh . . . a decrease in savings?</p>

<p>Also, the spending probably lags income, so April spending may have reflected strong March income.</p>

<p>And April may be when all those kids buy their prom dresses and shoes.</p>

3

<p>Americans live on credit. Income drops, spending increases, so does debt.</p>

4

<ol>
<li><p>A rise in spending comes after a rise in income; when it’s cause and effect, the two aren’t at the same time.</p></li>
<li><p>Americans don’t save.</p></li>
</ol>