Consumer spending up mainly because of sharp price increases

uscitizen

uscitizen

Villified User
Consumer spending up mainly because of sharp price increases

Thursday May 1, 5:57 PM EDT

WASHINGTON (AP) — Don't be fooled by a larger-than-expected increase in consumer spending. People aren't buying more — they're just paying more for what they buy.

That is raising doubts about whether the 130 million stimulus payments the government began sending out this week will be enough to lift consumers' sagging spirits.

The Commerce Department reported Thursday that consumer spending was up 0.4 percent, double the increase economists had forecast. However, once inflation was removed, spending edged up a much slower 0.1 percent.

http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d90d3qp00&date=20080501
 
uscitizen said:
Consumer spending up mainly because of sharp price increases

Thursday May 1, 5:57 PM EDT

WASHINGTON (AP) — Don't be fooled by a larger-than-expected increase in consumer spending. People aren't buying more — they're just paying more for what they buy.

That is raising doubts about whether the 130 million stimulus payments the government began sending out this week will be enough to lift consumers' sagging spirits.

The Commerce Department reported Thursday that consumer spending was up 0.4 percent, double the increase economists had forecast. However, once inflation was removed, spending edged up a much slower 0.1 percent.

http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d90d3qp00&date=20080501
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Well maybe. I acquiesce that I live in an upscale county, (DuPage, IL), but with that said, I get to a major mall about 2 times per week. Right now, based on parking lots/garages, along with bags being carried, not so much to complain about or call 'recession.'
 
It takes time for people to adjust. Credit spending is such a habit that it will go on for a while in spite of prices. But, starting with those with little to no credit, people will start examining their purchases more closely and start cutting back. The trend will work it way up to the middle class as they find themselves topping out their credit on higher prices.

That is why I feel sorry for the next president. The current economic conditions will cause a long domino effect that will extend the length of snail pace growth which will then slide into negative growth. The whole situation, due to being dependent on a credit economy, has the potential of making a llloooonnnnnggggg slide before real recovery is possible. And the next president will take the blame, as current (meaning "current" two or three years from now) administrations always do.
 
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