U.S. Consumer Spending Increases More Than Forecast

[NJmaverick]

Source: Bloomberg

March 1 (Bloomberg) -- Spending by U.S. consumers increased in January for a fourth consecutive month, a sign that the biggest part of the economy may contribute more to growth in coming months.

The 0.5 percent increase in purchases was more than anticipated and followed a 0.3 percent gain in December that was larger than previously estimated, Commerce Department figures showed today in Washington. Incomes climbed 0.1 percent, short of expectations and reflecting declines in dividends and interest.

Retailers such as Home Depot Inc. and Macy’s Inc. are forecasting rising sales this year, even as they don’t foresee a robust economic recovery. An unemployment rate that’s projected to average 9.8 percent this year may restrain household purchases, which account for about 70 percent of the economy.

“It’s a good start” for the year, said Brian Bethune, chief financial economist at IHS Global Insight in Lexington, Massachusetts, who correctly forecast the increase in purchases. Still, he said, “consumption is not going to be the driver” of economic growth.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aH9O6gFU0qDQ

[Earth_First]

1. They release THIS on the day when unemployment benefits runs out for one million workers?!

Do they really think were that fuckig stupid?

[FBaggins]

3. This release is USUALLY made on the first business day of the month.

Moreover... it isn't a universally "good" report that can cover up benefits running out. The report says that spending increased, yes, but income rose at a far slower pace.

[Earth_First]

6. This was more closer to rhetorical outrage than anything else...

But please, do go on with the jobless recovery cheerleading...

[FBaggins]

8. Correcting a simple error is now "jobless recovery cheerleading" ?

n/t

[NJmaverick]

10. That's a very good question

[FBaggins]

11. Thanks... but how do I know...

...that accepting a post from you isn't also a sign of jobless recovery cheerleading? :)

[NJmaverick]

12. You do run that risk

apparently only bad news is welcome

[NJmaverick]

7. Do you always assume that the administration is acting with bad intentions?

As was pointed out this was the standard release date.

[Newsjock]

2. If real inflation is running 0.6% and spending is up only 0.5% ...

... then consumers are actually falling behind.

[FBaggins]

4. Which figure are you using for "real" inflation? n/t

[high density]

5. "Consumption is not going to be the driver of economic growth"

If that's the case then where is economic growth going to come from? DC has decided they're going to be deficit conscious and not pass any more jobs bills. So increased government spending beyond what we've already got is out. Corporations are still acting as if they need to keep shedding workers to keep their ivory towers standing. They're not spending money on anything. So where is the money for growth coming from? The top 1% of the country is not spending enough money to sustain, let alone grow, our economy. The middle class already maxxed out their houses and CCs, now that wad is spent.

[NJmaverick]

9. I think you will see a jobs bill in the very near future