Farmers across the country have been decimated by lower food prices. Main Street is starting to feel the pain. Wall Street is too. Despite the recent increase in merger activity, Wall Street bonuses will be substantially smaller this year, and a number of major money center banks and brokerage firms already have announced sizable staff reductions. T-Bill rates are bond equivalent yield.
All figures are quarterly or yearly averages, rounded to one decimal point.
While personal consumption has remained remarkably strong, the rate of spending has been outpacing the growth in income. This is not sustainable. Consumer spending should moderate to about 3 percent or so next year from its current 4 to 5 percent. Capital spending actually fell 1.2 percent in the third quarter. Companies investing heavily in plant and equipment have been an important driver in the current expansion.