Consumer Spending in U.S. Rises More Than Forecast, Incomes Lag

[maddezmom]

Source: Bloomberg

Consumer spending in the U.S. rose more than forecast in July, exceeding gains in incomes, a sign the improvement will not last without more jobs.

Purchases rose 0.4 percent, the most since March, after little change the prior month, Commerce Department figures showed today in Washington. Incomes climbed 0.2 percent, less than projected, and the savings rate dropped.

Disposable incomes, or the money left over after taxes, dropped for the first time since January after adjusting for inflation, showing the lack of jobs is hurting Americans’ spending power. Companies from Intel Corp. to J. Crew Group Inc. are cutting forecasts as unemployment and flagging confidence prompt households to scale back.

Income and spending “are likely to weaken further from here,” Zach Pandl, an economist at Nomura Securities International Inc. in New York, said before the report. “We don’t think economy is slipping back in to recession, but the risks have increased.”


Read more: http://www.bloomberg.com/news/2010-08-30/consumer-spending-in-u-s-rose-more-than-forecast-in-july-incomes-lagged.html

[bluestateguy]

1. We'll take whatever good news we can

nt

[bread_and_roses]

5. er...what good news?

Incomes lag, no jobs on the horizon, savings fall, inflation up.

Mark Zandi, chief economist at Moody’s Analytics Inc., last week said the likelihood of the economy slipping back into a recession is now 33 percent, up from a 20 percent chance 12 weeks ago.

"Slipping back" - what a joke. The only people for whom this "Recession" ended were the Banksters and Wall St. vampires, thanks to our pusillanimous so-called "Representatives."

[earthside]

2. Spin this.

This report indicates pent-up demand that folks attempted to somewhat satisfy in July after building since March.

But, the spending came out of people's savings and incomes were essentially flat.

Actually, not much news here ... except more indications that the recession endures for working and middle class Americans

[xchrom]

3. Recommend

[gibby2433]

4. This is the Conservative/Tea Party dream coming true

They just don't realize it.

The Reagan shit-storm economic ideology, that corporations and Wall St. can do whatever the hell they please, then, maybe, toss the worker-bees some scraps, as well as raking in record profits while stagnating worker pay or eliminating jobs altogether.

BUT KEEP SPENDING!!! THE ECONOMY NEEDS YOUR MONEY!!!

Ahhh, so the last thirty years we've surrounded ourselves with "stuff" and become debt-ridden consumer drones. But then we max out our credit and then we take out second mortgages until finally we sink.

It's the conservative Catch-22: How do we allow the top 1% to rape the rest of the country indefinitely?

Then blame the stupid consumer for overreaching. Then preach personal responsibility. Then keep their pay the same or lowered, raise their retirement age and get rid of Social Security. Then get them to blame one another for not working hard enough, not achieving the "American Dream," which now seems to be simply to get rich enough that you don't have to suck off the government teet. Anything less and you've failed. Forget Life, Liberty and the Pursuit of Happiness in their literal senses, they all stand for Money in conservative-land.

The Conservative/Tea Party dream is to get the poor and those unable to achieve financial independence to...what? Just shrivel up and die, I suppose. Or find Christ and maybe the church will help them. Their biggest ignorant blind-spot is that to live in their Utopian Capitalism world there are, by definition, winners and losers. But in their child-like minds they think everyone's a winner just by hard work alone. But if you DID lose, you were just lazy and we can't help you, sorry. Yet they refuse to see that the people they support to "lead" us are making it harder and harder for the average citizen to achieve their Utopian vision.

That to allow schools to deteriorate, to allow college to become a pipe dream without a wealthy benefactor to pay your way, to allow Corporate America to keep selling the country out to the highest bidder, all makes us work harder for less, makes us scratch our heads and blame the liberals for some reason, makes us grow old and bitter wondering why our conservative gods sold us out and took our safety nets away. They told us we were all going to be rich someday, if we just work hard enough. And I did, I worked myself to the bone. And when I retired I was making less than when I started. Shit, maybe I should've fought to keep Social Security, I could really use it right now.

[Kolesar]

6. They will make enough electoral gains in November to f-up the next session of Congress

They will filibuster and prevent further economic action by the government. The economy will be worse when President Obama has to stand for reelection.

welcome to our forum :hi:

[whoneedstickets]

7. Looks like consumers are trying to get us out of this downturn, now its the corporations turn.

The idea that corporate America is sitting on the cash from these profits and not doing anything irks me to no end. Eventually, they'll have to do something with it (shareholders will demand investment or dividends). I fear it will go offshore.