Posted on 08/02/2011 8:49:42 AM PDT by tobyhill
U.S. consumer spending unexpectedly dropped in June for the first time in almost two years and savings climbed, adding to evidence that the slump in hiring is hurting household confidence.
Purchases declined 0.2 percent after a 0.1 percent gain the prior month, Commerce Department figures showed today in Washington. The median estimate of 77 economists surveyed by Bloomberg News called for a 0.1 percent increase. Incomes grew at the slowest pace since November.
The lack of jobs combined with wage gains that have failed to keep pace with inflation raise the risk of further cuts in consumer spending, which accounts for 70 percent of the world's largest economy. Companies like Newell Rubbermaid Inc. are among those cutting forecasts for the year.
(Excerpt) Read more at sfgate.com ...
Translation: "It's not his fault."
Just anecdotal, but in the last three months, I’ve personally seen a slowdown whether in book sales or investments in film projects of monumental proportions. Some of that is the closing of Borders, but still, I’m hearing stories that I didn’t hear a year ago and which I think show that spending finally caught up to people’s credit cards.
no sane businessman will hire anyone if they do not absoluly have to.
Consolodate and automate.
Obamacare is still the troll out there.
If there was any business in America whose “experts” were surprised as often as these so-called economists who are always “surprised” by the results, they would have been fired long ago.
Cheers!
Until we get a grip on high energy costs, we will continue to have a slumping economy.
*drink*
How could anyone have expected that people without jobs would spend less? Politicians don’t let not having income prevent them from spending.
There is. It is called Meteorology.
Wreckovery Summer Part deux
High Energy prices, fostered by President 0’s nusy “green” policies, are killing the US, and thus the World, Economy.
Every single GOP candidate should be saying “a Policy of US Energy Independence” in every speech from now to Nov 2012.
High Energy prices have an radically negative effect on the economy. High energy prices destroy US Consumer Confidence and they eat up US Consumer’s discretionary spending dollars.
US Consumer spending is the engine that drives the World Economy. Without it any economic recovery will be anemic at best.
High energy prices effect not only the price of gasoline, but also the price of every good and service the consumer buys. It also drives up the price of the energy the consumer buys to power their homes. It drives up the costs for producers to produce the goods US Consumers buy.
Until the cost of energy is addressed the US, and the world, economic recovery is going to be stagnant at best.
ditto.
only government spending creates jobs, don’cha know
Hey Obama: businesses provide jobs AND folks with jobs pay taxes... a lot of taxes. Not just income taxes, too.
With Obama, everything is unexpected. However, if GW were still president, it would be expected.
LOL, so true.
We are the next Greece unless we can change the Socially Dependent attitudes.
The Democrats are doing everything that they can to hold back, control, hamper, regulate and steal from businesses and those who start, own and run them. Ergo they are doing everything they can to destroy the economy.
Remember when the One was elected people were saying “Don’t buy anything, it only gives them tax money”
“Buy at garage sales”
“Minimize your income, it keeps them from getting taxes”
Looks like some people anyway have taken the advice seriously
I would imagine a fair amount is attributable to seniors clamping down because they are afraid they won’t get their SS check.
Smooth move there, Bamster.
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