ar in September. The 0.1 percent rise may seem miniscule, but compares favorably to a 1 percent drop a year ago.
Retail analyst Candace Corlett says consumers remain frugal.
"There is a real movement afoot that says, 'I do not want to go back to the debt I used to carry.' Consumers are being selective," said Corlett. "It is not that they do not have some money to spend. But they just are not going to spend it everywhere."
The consensus view among economists is that consumer spending is urgently needed in the short term to spark economic expansion, but that ultimately Americans must save more and consume less than they did before last year's financial meltdown.
Earlier this week, Australia became the first industrialized nation to raise interest rates since the financial crisis and global economic slowdown struck last year. Thursday, the European Central Bank left a key interest rate unchanged at a record-low one percent, but said the worst of the recession is over.
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