Consumer Spending and Incomes in U.S. Stagnate

[Roland99]

Source: Bloomberg

Consumer spending and personal incomes in the U.S. unexpectedly stagnated in June, showing a lack of jobs is hurting the biggest part of the economy.

Purchases were unchanged after a 0.1 percent gain the prior month that was smaller than previously estimated, Commerce Department figures showed today in Washington. Incomes didn’t increase for the first time since September and the savings rate increased to the highest level in a year.

Demand may take time to improve as the unemployment rate hovers near a 26-year high, shaking confidence in the economic recovery. At the same time, Federal Reserve Chairman Ben S. Bernanke yesterday said consumer spending, which accounts for about 70 percent of the economy, may “pick up” as wages increase.

“Consumers are still hunkered down,” Ryan Sweet, a senior economist at Moody’s Economy.com Inc. in West Chester, Pennsylvania, said before the report. “The second half of this year we’re going to see slower spending.”

Read more: http://www.bloomberg.com/news/2010-08-03/consumer-spending-personal-incomes-in-u-s-unexpectedly-stagnated-in-june.html

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I'm totally serious when I say I wish I'd chosen a career as a "Surprised Economist"

[WCGreen]

1. Recommended for the Surprised Economist thing....

They are alwasy surprised...

[Newest Reality]

2. Shockingly unexpected surprise there!

Who would have expected it?

Now, they can sit around and wait for those expected wage increases mentioned. There is a rumor going around that the Wage Fairy is fluttering about waving the magic wand of increasing income over more and more people who are still employed.

Then comes the Jobs Genie!

[TBF]

3. So they lay everyone off and then they're surprised that noone is out shopping.

Guess they should've thought that through a little better...

[onethatcares]

4. geeez, where do they hire these folks? more importantly

why the hell do they pay them the big bucks to tell us we're outa work and outa money?

[sendero]

10. Here it is...

.. http://kunstler.com/blog/2010/07/what-is-it.html

"The most confused of any putative authorities are the academic economists, lost in the wilderness of their models and equations and their quaint expectations of the way things ought to go if you can tweak numbers. These are the people who believe with the faith of little children that if you can measure anything you can control it. They will go down in history as the greatest convocation of clowns ever assembled, surpassing all the collected alchemists, priests, and vizeers employed in the 1500 years following the fall of Rome."

[HCE SuiGeneris]

5. Ohmygosh!

Craziness in the economy. Who could have seen this coming? It's a total mindf**k!

:crazy:

[Donnachaidh]

6. And by Friday a legion of Smiley Economists will spin it into Sunshine and Puppy Dogs

And we'll be told we're in a RECOVERY!!!! Part Two!

Because after all, the only important people are the ones who benefit when the Serfs, err, Consumers spend their hard earned nickels at the Corporate Company Store.

:eyes:

[skoalyman]

7. I used to get surprised

paxil changed all of that :hide:

[Downwinder]

8. I'm just balancing my budget, like I'm told to do.

Put more money in my pocket and I'll spend more. Take it out and I'll spend less.

[Demeter]

9. The Fact That Anyone at Moody's Has the Nerve to Make a Public Statement Astonishes

but egoism is rampant in the business world.