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Personal Incomes Increase, Gains Given Back at the Pump

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The Commerce Department says American’s personal incomes rose in March. But much of that extra money went to pay for more costly gasoline.

Personal incomes were up by 0.5% last month while consumer spending increased by 0.6%. Personal incomes in Colorado are higher than most other states. In 2010 Colorado was 14th in the nation with an average worker earning $42,800.00. But like other states steadily climbing gasoline prices are taking an ever larger chuck of a person’s paycheck. $4.00 a gallon gas arrived this week in Vail while the national average is $3.88.

Consumer spending was expected to post solid gains this year helped by stronger employment growth and a 2 percentage-point cut in social security taxes. But higher prices for gas and food have economists scaling back their growth forecasts for the rest of the year.

Email: brian.larson@kunc.org