Consumers spend it all

[bemildred]

Savings rate falls to 0%; consumer spending up 0.8%

The personal savings rate fell to 0%, the lowest since the post-9/11 consumer spending binge in October 2001 and the second-lowest since the Great Depression.

Meanwhile, inflation was calm, with both headline and core inflation measures flat for the month. Core inflation is running at a rate up 1.9% in the past 12 months, the smallest gain since last August. Read the full report.

Economists had expecting incomes to rise 0.4% in June, with spending projected to rise 0.8%, according to a MarketWatch survey. See Economic Calendar.

Incomes rose 0.2% in May, while spending was flat.

MarketWatch

[getmeouttahere]

1. And yet our consumption-based economy...

is still sluggish. Gee, wonder why? Could it be that there are fewer consumers, and those that are left have less disposable income?

[FloridaPat]

2. Gas has doubled. My ice cream has gone from $2.50 to $3.80 for

a pint. My tea has gone from $2.65 to $3.65 a box. We have another department stores closing down in the mall. I still don't have an income since January. And I am hearing nothing about jobs for programmers. But inflation is 1.9% and the economy is in great shape.

Maybe it's my math. Did they change math since I was in grade school?

[getmeouttahere]

3. Nope, I'm seeing those price increases too....

just one more example of the BushCo propoganda machine. They want to make sure that the upper middle class and above keep believing that things are improving. The rest of us know better (or should!)

[AJH032]

4. I spent $15 on a movie ticket

and I saw hot dogs selling at a small food stand for $6. Those things may be separate from inflation measurements (mainly the food), but it still makes you think.