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Mr. Hoyt, at Moody's Economy.com, said that the behavioral changes were likely to be less transformative than what followed the Depression but that after three decades when consumer spending outpaced gross domestic product, the end of a spendthrift era may be here.
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Consumer spending outpaces income gains but some wonder if consumers can keep spending.
Investors also were not discouraged by a report showing U.S. consumer spending outpacing income growth in September.
As consumer spending has outpaced incomes, household saving has plunged.
American consumer spending has outpaced the rest by an even bigger margin, growing at an annual rate of 3%, compared with 0.8% in Germany and 1.3% in Japan.
It is also well below rates in the euro area, which are typically above 10%.Thanks to the decline in saving, Japanese consumer spending has outpaced the growth in incomes.
As spending outpaced hospital budgets, business executives increasingly took over.
Federal spending outpaced revenues.
This can't go on -- in the long run, consumer spending can't outpace the growth in consumer income.
They will note that consumer spending managed to outpace inflation in May, largely because of rebate checks from the federal government, before the June report.
Given that consumer spending did not outpace income growth by as much as the government initially reported, the corrected spending figure did lead to an improvement in the nation's personal savings rate.
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