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Consumer spending drops for first time in a year

DA60 said:
Consumer spending drops for first time in a year

News Release: Personal Income and Outlays
Click to expand...

I wonder if this could have anything to do with the fact that the gov't has done nothing to create jobs. When you give the money to big banks and bankers, the rich get richer. Who'd a thunk it? Not to worry, expensive jewelry, yachts and mansion sales are up. The gov't has trapped itself within a shell economy for the rich. It's strange because most voters are not rich. Do you think they will consider third party, because republicrats just keep on fugging up.
 
It was the " Bad weather ".
 
DA60 said:
Consumer spending drops for first time in a year

News Release: Personal Income and Outlays
Click to expand...

Also from the article:

The setback came after a huge increase in the previous month...

If one goes to table 7 of the report (http://www.bea.gov/newsreleases/national/pi/2014/pdf/pi0414.pdf), one finds that despite the April dip, real personal consumption expenditures are up 1.1% from December 2013 (annualized rate of growth: 3.3%). March had a 0.8% increase (annualized 10.2% rate). Such a rate of increase was not sustainable.

The big March gain may well have reflected the impact of consumers starting to make up for deferred purchases (on account of the weather-related factors, among others, that impacted Q1 GDP). Even after the April dip, real personal consumption expenditures are running 0.5% above the February level and Q2 remains on track to be solidly stronger on this measure than Q1. That outcome also points to a much stronger Q2 GDP report, as personal consumption expenditures account for just over 70% of U.S. GDP.

Overall, the narrative of continuing moderate economic growth still appears to be holding together, especially when one considers the full-range of data.
 
donsutherland1 said:
Also from the article:

The setback came after a huge increase in the previous month...

If one goes to table 7 of the report (http://www.bea.gov/newsreleases/national/pi/2014/pdf/pi0414.pdf), one finds that despite the April dip, real personal consumption expenditures are up 1.1% from December 2013 (annualized rate of growth: 3.3%). March had a 0.8% increase (annualized 10.2% rate). Such a rate of increase was not sustainable.

The big March gain may well have reflected the impact of consumers starting to make up for deferred purchases (on account of the weather-related factors, among others, that impacted Q1 GDP). Even after the April dip, real personal consumption expenditures are running 0.5% above the February level and Q2 remains on track to be solidly stronger on this measure than Q1. That outcome also points to a much stronger Q2 GDP report, as personal consumption expenditures account for just over 70% of U.S. GDP.

Overall, the narrative of continuing moderate economic growth still appears to be holding together, especially when one considers the full-range of data.
Click to expand...

And if you look at the data for March, that huge spending increase of 1% came despite a personal income increase of only 0.5%.

So the increase was fuelled by debt/personal savings reduction.

http://www.zerohedge.com/news/2014-...s-second-lowest-2008-pay-march-spending-spree

Hardly a sustainable trend.


The fact is that there were no weather excuses in April...and yet consumers spent less.

I am not saying this is a trend beginning...but I am just sayin'...
 
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DaveFagan said:
I wonder if this could have anything to do with the fact that the gov't has done nothing to create jobs. When you give the money to big banks and bankers, the rich get richer. Who'd a thunk it? Not to worry, expensive jewelry, yachts and mansion sales are up. The gov't has trapped itself within a shell economy for the rich. It's strange because most voters are not rich. Do you think they will consider third party, because republicrats just keep on fugging up.
Click to expand...

No. Not really. Why would an income determine consumer spending? There is unemployment. That can just be extended to say 200 weeks.
 
DA60 said:
And if you look at the data for March, that huge spending increase of 1% came despite a personal income increase of only 0.5%.

So the increase was fuelled by debt/personal savings reduction.

Hardly a sustainable trend.
Click to expand...

In other words, no growth at all, but debt based government spending....the proverbial digging of a hole to hide dirt.
 
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