WASHINGTON (3/9/09)--With the exception of government spending--all other economic drivers such as business investment--are falling, Bill Hampel, chief economist for the Credit Union National Association (CUNA), told the Associated Press Thursday.
CUNA's affiliated credit unions are reporting record increases in deposits, Hampel said.
The national savings rate rose to 5% in January from 0% last spring, according to government figures. January's rate is the highest since 1995 and constitutes a much faster savings increase than expected, Hampel told the news service.
Consumer spending accounts for about 70% of the total U.S. economy. Spending maxed out at 71% in 2005, but it will likely drop just two-to-three percentage points over the next few years, Hampel added.
courtesy of cuna.org