We learned more about what the U.S. consumer is doing with the extra money in their pockets from paying less at the pump. In a positive shift of sorts, Americans are saving and paying down debt rather than spending. Consumer spending hit its biggest decline since late 2009. Bill Stone is the Chief Investment Strategist at PNC Asset Management (PNC) and says this doesn’t conflict with expectations for consumers to spend more from lower gas prices. Stone pointed to last week’s GDP data that showed ‘consumers drove growth during the quarter, more confident and with more cash thanks to lower gasoline prices.’ This week is the last heavy week of earnings season. By sector, Stone says ‘Telecommunications is reporting the highest growth in earnings while Energy the largest decline.’
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