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Economy
In reply to the discussion: Weekend Economists and the Accidental President December 13-15, 2013 [View all]xchrom
(108,903 posts)11. Kids Living in Basements Drag On U.S. Services Spending: Economy
http://www.bloomberg.com/news/2013-12-13/service-spending-lag-called-culprit-in-slow-u-s-growth-economy.html
The U.S. economy is suffering a service interruption.
Consumer spending on services -- everything from rents and water bills to health care and haircuts -- is a laggard as the economy has recovered from the worst recession since the Great Depression. Such expenditures adjusted for inflation have risen 6.3 percent since mid-2009, compared with a 34 percent surge in outlays on durable goods such as automobiles and appliances, according to data from the Commerce Department in Washington.
Slow services spending is the culprit behind sluggish growth of the economy, said Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc. in New York.
Outlays have been held back by a slowdown in new household formation and meager wage growth. As young adults stay home with their parents rather than forging out on their own, spending on utilities and amenities such as cable television has languished.
The U.S. economy is suffering a service interruption.
Consumer spending on services -- everything from rents and water bills to health care and haircuts -- is a laggard as the economy has recovered from the worst recession since the Great Depression. Such expenditures adjusted for inflation have risen 6.3 percent since mid-2009, compared with a 34 percent surge in outlays on durable goods such as automobiles and appliances, according to data from the Commerce Department in Washington.
Slow services spending is the culprit behind sluggish growth of the economy, said Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc. in New York.
Outlays have been held back by a slowdown in new household formation and meager wage growth. As young adults stay home with their parents rather than forging out on their own, spending on utilities and amenities such as cable television has languished.
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