Consumer Spending in U.S. Drops a Second Month After Inflation Adjustment

[papau]

http://www.bloomberg.com/news/index.html

Consumer Spending in U.S. Drops a Second Month After Inflation Adjustment
U.S. consumer spending dropped for a second month in September when adjusted for inflation, the first back-to-back decline in 15 years and a sign that rising fuel costs left Americans with less money for other purchases.

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aFVkcU4WlTJc&refer=news_indexU.S. Economy:

Inflation-Adjusted Spending Declines (Update2)

Oct. 31 (Bloomberg) -- U.S. consumer spending dropped for a second month in September when adjusted for inflation, the first back-to-back decline in 15 years and a sign that rising fuel costs left Americans with less money for other purchases.

Personal spending adjusted for inflation, which strips away the rise in energy prices, fell 0.4 percent after falling 1 percent in August, the Commerce Department said today in Washington. Before the adjustment, spending rose 0.5 percent last month after a 0.5 drop in August. Incomes rebounded from a plunge in August caused by uninsured losses from Hurricane Katrina.

Slower consumer spending, which accounts for about two-thirds of the economy, may be offset by a pickup in manufacturing, economists said. The National Association of Purchasing Management- Chicago's Business Barometer unexpectedly rose in October, as orders increased and backlogs reached the highest in a year.

``We should see continued consumer weakness in October and November, while industry overall does quite well,'' said Haseeb Ahmed, an economist at J.P. Morgan Chase in New York, which now expects fourth-quarter spending to rise at a 1.5 percent annual rate, the slowest since the final three months of 2002. ``The soft trajectory going into the fourth quarter has adverse implications.'<snip>'

[UpInArms]

1. hmmm.... first back-to-back drop in 15 years

let's see, who was in office 15 years ago?

Why...

that would be...

Poppy Bush!

and what was it that I heard the idiotsonofanutjob say back on the campaign trail in 2000?

Oh, yes!

It was:

Ah'm gonna pick up whar' ma daddy lef' off! GWB (campaign 2000)

[JNelson6563]

2. The soft trajectory going into the fourth quarter has adverse implications

Translation: Things are bad and about to get worse. ;-)

[barb162]

3. just wait till winter heating season bills hit Mr and Mrs America

[AX10]

4. Wait until the winter heating bills and the 2006 Hurricane season...

arrive. If you think it's bad now, well.........

[twaddler01]

5. Gee I wonder why

Thank you GWB for giving us this wonderful economy! :sarcasm:

[ozone_man]

6. Doesn't bode well for xmas shopping season.

After gas, heat, mortgage and credit card debt payments, there won't be much left.

[NVMojo]

7. yep, winter shopping doesn't look too positive right now ...

[SoCalDem]

8. Lots of "former spenders" filed for bankruptcy before the deadline

and they have no plastic to use. They are spending every spare cent for gasoline..sorry walmart :)

[jayfish]

9. Uninsured Losses From Hurricane Katrina Caused...

incomes to plunge? WTH?? How does that work?

Jay