Just about everyone these days is making speculations about the state of the economy. While many industry experts and economics disagree about the cause and effects of this recession, most can agree that the economic recovery is going to be a slow one. An economist at Texas A&M University is one of the many weighing in on the debate. In a recent press release, the university shares the thoughts of Dr. Charlie Hall. Here is an excerpt from that release…

Dr. Charlie Hall, who also is the Ellison Chair in International Floriculture at Texas A&M University, said at the 2009 Texas Plant Protection Conference recently in Bryan that the economic recovery is going to be slow, “but that’s a good thing.” Current economic concerns include the global financial situation, auto industry, energy consumption and overall U.S. infrastructure, he said, adding the U.S. labor situation is improving as weekly unemployment claims are declining. He said that the national definition of the savings rate doesn’t include two things: appreciation of home and 401(k) retirement accounts.

“I think we as consumers will save a little bit more, but that does not mean we will stop spending altogether,” said Hall. “I think the Great Recession has prompted people to be more frugal and temporarily increase the savings rate. In terms of the long run, spending is too ingrained in the mindset of the consumer, but they will exhibit a smarter consumption pattern.”

How about you? Are you practicing frugality this year? Do you see an increased savings over spending among the typical American consumer?