| Topic: |
Politics > Politics-USA |
| User: |
"Harry Hope" |
| Date: |
31 Oct 2003 08:44:40 AM |
| Object: |
Consumers spending falls in September. Largest decline in a year. |
Economists had said in advance of Friday's report that the brisk pace
of spending -- which helped spur a 7.2% 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.
From Reuters, 10/31/03:
http://www.usatoday.com/money/economy/income/2003-10-31-spending_x.htm
Consumers pare spending in September
WASHINGTON (Reuters) --
Consumers kept a tighter grip on their wallets in September, trimming
spending 0.3% after a summertime shopping spree that propelled a third
quarter of strong economic growth.
The largest month-over-month decrease in spending in a year, reported
Friday by the Commerce Department, came after consumer spending shot
up 1% in July and then 1.1% 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% 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% decrease in spending.
The 0.3% decline was the largest since a 0.4% drop in September 2002.
_______________________________________________________
So much for Bush's jumping for joy about his "recovery".
Harry
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| User: "Wbarwell" |
|
| Title: Re: Consumers spending falls in September. Largest decline in a year. |
01 Nov 2003 12:58:58 PM |
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Tabernacle wrote:
Harry Hope <rivrvu@ix.netcom.com> wrote in message
news:<jat4qv0untb7pe049hb627u3es0nh0ursc@4ax.com>...
Economists had said in advance of Friday's report that the brisk pace
of spending -- which helped spur a 7.2% 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.
From Reuters, 10/31/03:
http://www.usatoday.com/money/economy/income/2003-10-31-spending_x.htm
Consumers pare spending in September
WASHINGTON (Reuters) --
Consumers kept a tighter grip on their wallets in September, trimming
spending 0.3% after a summertime shopping spree that propelled a third
quarter of strong economic growth.
The largest month-over-month decrease in spending in a year, reported
Friday by the Commerce Department, came after consumer spending shot
up 1% in July and then 1.1% 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% 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% decrease in spending.
The 0.3% decline was the largest since a 0.4% drop in September 2002.
_______________________________________________________
So much for Bush's jumping for joy about his "recovery".
Harry
From looking at the numbers behind the number Harry I found out that
surge came from just a seven week spending period!Also during that
same time the U.S. economy lost a net 41,000 jobs, so we know that
nobody did much hiring which suggests that 7.2% GDP is more a flash in
the pan just as past surges in GDP have turned out to be!
Bush has already warned that this rate of growth will be sustained
in further quarters. So even the adminstration realizes its a fluke.
We had 5.8% growth immediately after the last rounds of rebate
checks but that immediately dropped afterwards, we have been here before.
We will see a little boost from the usual holiday shopping season, but
things will drop hard by March, the real start of the election season.
I am seeing some articles from a few people with very good track records
that are predicting a big sag for the stock market come March too.
If so, we could have a perfect storm for Bush. High unemployment, bad
stock market, slow economy, massive deficits. And he may be in a position
to have to beg another massive amount of money for Iraq and Afghanistan too.
Almost forgot to mention one other interesting number boys and girls
which has the Wall Street herd looking very nervous the last two days
because inflation during the 3rd quarter jumped as well by 2.5%, which
means Crazy Al may very likely hike the rate, which (if he does) could
open the flood gates on the banks and the credit industry to charge
higher rates much much quicker than they already are.
--
When I shake my killfile, I can hear them buzzing!
Cheerful Charlie
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