After years of piling up debt and neglecting to save, Americans are reining in their free-spending ways -- which could signal a long road ahead... -- "We're at a watershed moment," said Jay P. Feldman, an economist with Credit Suisse in New York. "The era of consumers living beyond their incomes is at an end."
Most economists expect the gross domestic product for the first three months of the year to show that consumption inched upward a few tenths of a point, enough to keep the economy above the zero mark -- though barely. That pales next to the 2.5% and 3% leaps of recent years, and much of the rise will be the result of Americans' paying more, especially for food and gas, not buying more.
"This is going to usher in a period when consumption is going to be as weak as we've seen it in two decades," predicted Edward F. McKelvey, senior economist with Goldman, Sachs & Co. in New York. ... more »