Personal Incomes Increase, Gains Given Back at the Pump
The Commerce Department says American’s personal incomes rose in March. But much of that extra money went to pay for more costly gasoline.
Personal incomes were up by 0.5% last month while consumer spending increased by 0.6%. Personal incomes in Colorado are higher than most other states. In 2010 Colorado was 14th in the nation with an average worker earning $42,800.00. But like other states steadily climbing gasoline prices are taking an ever larger chuck of a person’s paycheck. $4.00 a gallon gas arrived this week in Vail while the national average is $3.88.
Consumer spending was expected to post solid gains this year helped by stronger employment growth and a 2 percentage-point cut in social security taxes. But higher prices for gas and food have economists scaling back their growth forecasts for the rest of the year.