Consumer Spending Slows in September

[Hissyspit]

Source: Associated Press

Consumer Spending Slows in September
By MARTIN CRUTSINGER (AP Economics Writer)
From Associated Press

WASHINGTON - Consumers, battered by a steep downturn in housing and a severe credit crunch, slowed spending growth in September to the weakest performance in three months.

The Commerce Department reported Thursday that consumer spending rose by 0.3 percent in September, slightly lower than the 0.4 percent increase that analysts had been expecting. Incomes grew by 0.4 percent, matching the August gain, and in line with analysts' forecasts.

Economists are worried that consumers, the main support for the economy, may cut back on their visits to the malls in coming months as they struggle with the housing slowdown, tighter credit and now record-high oil prices.

The Federal Reserve on Wednesday cut a key interest rate for the second time in six weeks in an effort to make sure the economy does not tumble into a recession. However, the central bank also expressed concerns that surging oil prices could fan inflation pressures. Oil prices have soared to record highs in recent days.

Read more: http://enews.earthlink.net/article/top?guid=20071101/47295d50_3421_13345200711012094487130

[ixion]

1. stagflation here we come

yet another catastrophic success, brought to you by BushCo. :grr:

[RUMMYisFROSTED]

2. Chimpflation?

:shrug:

[Demeter]

3. If It Stopped at Stagflation, We'd Be Lucky

It's going to be much, much worse, for a long time, before it gets up to stagflation...

[acmavm]

4. First of all consumers have to have something to spend.

Idiots.

[quispquake]

5. Hmmm...

JUST MAYBE, since I just paid $329 for ONE HUNDRED gallons of K2 yesterday, that's not leaving any extra money to buy anything else...

But I guess I'm okay...the Federal Reserve is on it...and Exxon is making record profits, so all is well in Chimpville...

[spinbaby]

6. Wait a minute

Just last night on the news, I saw a report about how wonderfully fast our economy is growing and how consumers are spending again. Maybe all that spending is on heating oil:-(

[thunder35]

8. they aren't telling the truth

[jordi_fanclub]

7. Crude "inflation" = 90% in just 10 months!!!

The neoCONartists trying to show everything's orderly ok.
REALITY is... the cooked US statistics CAN'T hide this:

[Dr.Phool]

9. And I can hardly wait to spend my 2.5% raise in January.

Rolling in dough I tell you!

I'll run out and buy a gallon of gas!

[ClintonTyree]

10. Wait until the christmas retail reports come in.....

I don't know anyone who plans on increasing christmas spending this year. Most are going to severely cut back, myself included. I have three choices this year; I can starve, freeze or die from lack of medication. I can't afford all three so something's got to give. I think the retailers are in for a black christmas. The dollar is bordering on worthless as it is. Wait until after the holidays.

By election time next year the economy is going to be so far in the tank it won't be funny. And the Bush administration has run out of lipstick to put on their economic pig. They can't dress up that swine anymore. They're run out of tricks to bamboozle the public about the "Bush economic miracle". They're running out of lies. Too bad they got away with it for 7 years before people woke up.

[w8liftinglady]

11. I think you are right.My family has already agreed-No Christmas,except for the kids

[AnneD]

12. It is going to be....

a socks, bras, and underware Christmas for us. The kids will get something nice cause they're kids. The splurge will be 2 comforters if they are priced right!

I have 1K in my Christmas account at the credit union only because they have a drawing late this month and match it up to 1K :thumbsup:. Once the drawing is over I will take out $200 for Christmas ($100 less than last year)and pay off some more debt. Merry Christmas:eyes: