MSNBC Business Bulletin: Consumer Spending Drops

[Katie]

Consumer spending slips

September pullback came after summer shopping spree


ASSOCIATED PRESS

WASHINGTON, Oct. 31 — Consumers kept a tighter grip on their wallets in September, trimming spending by 0.3 percent after a summertime shopping spree that propelled a third quarter of strong economic growth.
THE LARGEST OVER-THE-MONTH decrease in spending in a year, reported Friday by the Commerce Department, came after consumer spending shot up by 1 percent in July and then another 1.1 percent in August. Consumers spent more lavishly earlier as they began to see the cash from President Bush’s third round of tax cuts.
Economists had said in advance of Friday’s report that the brisk pace of spending — which helped spur a 7.2 percent annual rate of growth in the third quarter — just couldn’t be sustained. They had predicted that shoppers would rein in their finances in September, and they did just that.
Analysts had forecast a 0.1 percent decrease in spending. The 0.3 percent decline was the largest since a 0.4 percent drop in September 2002.
http://www.msnbc.com/news/987426.asp?0cm=c20

[madfloridian]

1. But But....yesterday they said we "spent with abandon."

Now I am so confused. Everyone here was talking about all the fun they were having throwing away their money. I wish they would not confuse me so much.....
:think:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=618832

[Demobrat]

2. People did spend with abandon.

They spent the money they took out of their homes. But the refinancing boom can't last forever.

[PurityOfEssence]

4. notice the past tense: folks did a lot of spending, and now they is spent

Mortgage rates are as low as they can really get and property values are quite high (at least around here) so people have had their one time only fling.

I know; I'm confused too. I always thought that you couldn't run things straight into the ground and just keep on going and still have a viable system. I guess that's why the grownups are in charge...

[Neutrino]

3. Just waitin on that next Bush Tax Cut!

git that $400 check any day now.

[DoYouEverWonder]

5. So since W was so quick

to take responsiblity yesterday for the good numbers, will he take responsiblity today for the bad numbers? I doubt it, his spinners are probably trying to figure out a way to blame it on Clinton's penis.

[PROGRESSIVE1]

6. Shut up you communist Librul media!

.....or so says MANN CoulterKAMPF!

[TahitiNut]

7. duplicate

See http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=193159

I'm locking this thread. Interested DUers are welcome to continue discussing this in the referenced thread.

Thank you for your understanding and cooperation,
TahitiNut - DU moderator