According to the annual survey of consumer behavior conducted by the U.S. Department of Labor, Americans earned and spent less for the second year in a row in 2010, while healthcare costs rose.
The 2 percent drop in consumer spending was just the second decrease since 1984, when the survey began. The other year marked by less spending was 2009.
In 2011, consumer spending has risen again, although factors such as gas prices, healthcare costs, unemployment and limited pay raises are credited with restraining that increase. Because consumer spending accounts for 70 percent of economic growth, the limits are in turn indicated as the main factor slowing economic recovery.
With gas and healthcare costs increasing and average income dropping, many households reportedly spent less on food, entertainment, restaurants and charities.
This year, consumer spending and income each increased modestly, despite economic difficulties. Many employers are trying to develop improved benefit structures to keep care affordable for businesses and the employees covered.
For example, many programs are increasing their focus on preventive measures and early management of chronic conditions in order to reduce long-term costs.
