In signs that the economy could be turning around, consumers earned more money last month and spent more, the Commerce Department reported today.
Personal income rose 0.2% in August, the same as in July, while disposable in August personal income rose 0.1%, following no change in July.
Consumer spending increased 1.3% in August, the largest jump since May 2008. In July, consumer spending rose 0.3%. The August data reflect back-to-school spending and the end of the government's "cash for clunkers" program.
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But the fragility of the economy was apparent in the second quarter delinquency data released by the American Bankers Association, which showed rates hitting quarterly highs for home equity loans, home equity lines of credit, and bank cards.
There were increases in delinquencies for: home equity loans, marine loans, personal loans, property improvement loans and RV loans.
There were declines in delinquencies for: direct auto loans, indirect auto loans and mobile home loans.
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