People may not be making any more money in their paychecks, but they're starting to shop a little more. Despite stagnant income, consumer spending increased for the fifth consecutive month in February. Experts say that could help many unemployed people find a job. The more people who shop, the more employees retail stores need. More workers means more money back in the economy.
"If income rises of employees they will likely spend more," UNCW economist Woody Hall said. "Sort of a perpetual motion, or if you would, a self-fulfilling prophecy."
There is a down side, though. The increase in spending has been offset by a drop in the amount of household savings.
Still Hall says people are less likely to go into debt to make their purchases than they have been in the past.