There is some bit of good news and also some bit of bad news for the US markets. The consumer spending for the month of May 2009 has edged up for the first time since February, triggered primarily by the massive government stimulus spending.
The fear of uncertain future is also having its effect, and US citizens have taken their savings to the highest level in the last 15 years, touching a record high of 6.9%. Good part of the savings growth is due to the stimulus credits lying in bank accounts. With no further stimulus spending in the coming months, there could be wild swings and downward spikes in the consumer spending, which needs to be watched carefully.