"Consumers log stronger-than-expected spending rise."

[Clio the Leo]

Consumers log stronger-than-expected spending rise
By JEANNINE AVERSA (AP) – 1 hour ago

WASHINGTON — Consumers got back in the buying mood in October as their incomes grew modestly, an encouraging sign for the budding economic recovery.

The Commerce Department reported Wednesday that consumer spending rose a brisk 0.7 percent last month, following a pullback in September when spending plunged 0.6 percent.

It was the best showing since a big 1.3 percent jump in August when the government's now-defunct Cash for Clunkers programs enticed people to buy cars.

Incomes, the fuel for future spending, rose 0.2 percent for the second straight month.

The rebound in spending shows that consumers — who power 70 percent of national economic activity — are managing for now to hold up under the weight of some heavy negative forces.

"Don't count consumers out. They are making a contribution to the recovery," said Ken Mayland, president of ClearView Economics.

But the fear among Federal Reserve officials and other economists is that negative forces — including rising unemployment and hard to get credit, which makes it difficult to finance homes, cars and appliances — will eventually cause consumers to turn more cautious, making for a lethargic recovery.

Still, Wednesday's figures seemed to blunt fears that consumers could clam up, sending the country into a "double dip" recession, although there continues to be concern that consumer spending will slow early next year.

The increase in consumer spending in October was bigger than the 0.5 percent rise economists expected. The growth in incomes matched expectations.

http://www.google.com/hostednews/ap/article/ALeqM5iR9tcKfHeTSvcKp45fumd68LVchwD9C6JP100

I work in our cities biggest shopping neighborhood and traffic has been out of control for at least a month now. I've been saying to my co-workers that spending was probably up nation-wide. Obviously that's not a scientific method, and it could simply be a matter of consumers getting a jump on spending using money they've saved all year and sales will tank in December, but it's definitely an improvement over the ghost town we were last year.

Posted as a companion thread to this....
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=433&topic_id=16405&mesg_id=16405

[doc03]

1. Yea but Obama has had 10 months to clean up

an 8 year mess and we are not at full employment yet.:sarcasm:

[Kdillard]

2. Well the best part of the article was that incomes grew and along

With the report of new home sales rising 6.2 percent.

[jefferson_dem]

3. But my sister said one of her friend's aunts is not going to buy as many Xmas presents this year!

See! The econumy reely sux1!!!11! C'mon Barrack! This isn't belive i can change in!!!!(one)

[Clio the Leo]

4. You've been into the eggnog already, haven't you?

:silly:

Random, off-topic cheer:
Yay!!! Egg nog!!!! 24 more hours and I can drink eggnog!!!!!


Thank you Obama for not outlawing eggnog as the Republicans told me you would!!!!

[jefferson_dem]

5. I'm a huge fan of eggnog.

But will hold off this season since my sister's friend's aunt is feeling the pinch. Unless Barack delivers a case of eggnog with my pony pronto, that is.

[Clio the Leo]

6. I just wrote a letter to the President.....

.... telling him he'd better send me an eggnog FLAVORED pony ..... PRONTO!!!

If he fails to do so, I'm voting for Kucinich next time.

[ProgressOnTheMove]

7. Great to have some positive news for a change. It's going to be just fine in the end great days...

are ahead. Imagine where we would of been had the second repbulican great depression had kicked in. Pres. Obama is working to save us all it's just having to hangle the large forces working to oppose him with care and immense sophistication, that isn't always apparent on face value. One thing is for sure his 3rd biography will be a fascinating read. Like Perrino for instance does a person want her as President as pretty face on Faux news opposing a President or working alongside the President. The Faux audience love a pretty face that's for sure. He's playing chess and playing it very well.