Consumer spending [growth] lowest in 3 months (thanks, CNN)

http://money.cnn.com/2007/11/01/news/economy/bc.economy.ap/index.htm?postversion=2007110108 ^ | 11-1-07

[Hydroshock]

WASHINGTON (AP) -- Consumers, battered by a steep downturn in housing and a severe credit crunch, slowed spending growth in September to the weakest performance in three months.

The Commerce Department reported Thursday that consumer spending rose by 0.3 percent in September, slightly lower than the 0.4 percent increase that analysts had been expecting. Incomes grew by 0.4 percent, matching the August gain, and in line with analysts' forecasts.

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Economists are worried that consumers, the main support for the economy, may cut back on their visits to the malls in coming months as they struggle with a severe downturn in housing, the summer credit crunch and now record-high oil prices.

[Hydroshock]

Economy/Credit/Housing Issues Ping List

If you want on or off this lsit let me know.

[Perdogg]

Economists are worried that consumers, the main support for the economy, may cut back on their visits to the malls in coming months

Translation: here at CNN we are hoping that consumers will tank the economy before the 2008 elections.

[Larry Lucido]

So is this just a negative way of saying “consumer savings highest in 3 months”?

Just asking.

[alloysteel]

Just holding out for a blow-out at Christmas.

Plenty of goods and services available, not as much money chasing them.

[Larry Lucido]

consumers, . . . . , may cut back on their visits to the malls in coming months

Last week the headline was something to the effect, "Consumers face huge post-Chrismas season debt."

Which one, if true, is the bad one?

[Nathan Zachary]

I guess people are just too busy working to spend money. They are busy working to ship out that 1/3 increase in exports, thanks to a lower American dollar and spend happy Canadians.
Online shopping is booming.

[Larry Lucido]

Ah, you just answered my #5. They are stuffing their money in their mattresses, so they can blow it all at Chrismas (and then some).

Either way, we’re doomed.

[Perdogg]

I shop online because I am too good looking to wear cheap clothes from the mall.

:)

[henkster]

I went to the mall Saturday. It was PACKED, like you would expect for Christmas season. And it wasn’t because they were giving stuff away. The deals were not that great. But people were there spending lots of money, like I’ve not seen for some time. Lots of weekends at this mall you hear the crickets.

I think CNN makes this $*** up.

[rock_lobsta]

OH NOES!!!

Spending increased only 1/1000th less than the “financial experts” thought!

Oh... please save me a spot in the soup line... I’d pay you, but I’m saving for CHRISTmas.

BTW, ever noticed that these “financial experts” are right about as often as the Saints winning the Super Bowl?

[RSmithOpt]

Would you add me to your ping a ding list? Appreciate it. A few of us have seen this coming for over a year now....it’s just starting.

[RSmithOpt]

LOL!!

[Hydroshock]

done

[RSmithOpt]

Thanks....the increasing debt of both the government and the private sector cannot keep continuing without something giving. The Federal Reserve (Treasury Sept.) has been printing new money at an average rate of 14% ahead of the nation’s GDP for some time now basically when the housing bubble began bursting. I’m looking at the debt as a percentage of the GDP...and that’s moving up. The gov is issuing more bonds in hopes of putting the brakes on the housing bust’s effect on the economy and that’s making our dollar tank and oil skyrocket, and in the meantime, salary increases for the average worker is not even half of report inflation rate of 5%....actually it is 10%.

[traumer]