Americans cut back on their spending by 0.4 per cent or $40 billion according to Business Week publication.  Bot how have Americans been spending the rest of the money of those who are lucky enough to still be employed. 

In 2008, Americans spending decreased 10.8 per cent of their incomes on durable goods such as automobiles.  Spendingfor non durables according to Business Week publication fell by about 4.2 per cent.

Obviously, Americans are spending less on both durable and nondurable goods because of the recession. Surprisingly, spending on services seems to be up by 3.3 per cent.  The increase in spending on services indicates that Americans are spending money on repair services to keep and maintain the products they purchase.

Americans are making the right choice in servicing what they have in commodities and spending their money on maintenance to prevent having to purchase new products.  In fact, Americans spent $200 billion on services and $112 billion on health care.