Are we looking at an improvement in the economy with increase in personal income and spending?

This article on talks about how there is a rise in people’s personal income, savings and spendings. Hibah Yousuf, the author talks about the biggest bump in Personal Income in six months. This further led to an increase in personal savings and spending. Even though the figures were a little lower than the analysts’ expectations, there was a 2.2% increase in the GDP in the third quarter.

Could this really be the beginning of an improved economy? Could be. But, there is more to that than just increase in personal habits of people. We have to look at many factors, for instance what the government has in plan for the upcoming year. How much of tax payers’ dollars are going to be used to bail out companies and how much of already loaned out money is paid back. Then there is the downfall of the Dubai stock market. Could that affect the US or the global economy? It’s a question I’d like to research on and in the meanwhile would like comments and insights from people who know more than I do on the subject.

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