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A Bit Of Good News For Once - Consumer Spending is UP
NEW YORK (CNNMoney.com) -- Consumer spending rose more than expected in January, after declining for six consecutive months, according to government figures released Monday.
The Commerce Department report showed spending by individuals rose 0.6% last month, after dropping 1% in December. Economists surveyed by Briefing.com had forecast an increase of 0.4%.
The report also showed that personal income rose 0.4% in January, following a decline of 0.2% in the previous month. Economists had forecast another 0.2% decline.
It's especially good news to hear that consumers are spending so soon after the Christmas holidays. Usually folks are a bit short on money in January. I sincerely hope this figure will continue to rise.
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The increase in consumer spending was mostly in nondurable goods. There is not enough detail to be able to tell whether this is an optimistic sign or not. Consensus seems to be that it is likely temporary. Possibly the increase is due to increases in energy prices off the December lows or due to consumers making sure they use their gift cards before they go bad.
Private income declined, as did proprieter income. The increase in income was due to increases in transfer payments from the government.
March 2, 2009 11:59 AM | Reply | Permalink
You've just gotta knock any sign of hope down don't ya!
March 2, 2009 12:45 PM | Reply | Permalink
Just a reminder to those that knock good news --- most of the problem right now is people THINK that things are bad, so they stop spending.
If they THINK things are improving.....do ya get it?
March 2, 2009 12:47 PM | Reply | Permalink
There may be some optimism stemming from confidence in the current leadership despite the crisis.
March 2, 2009 1:29 PM | Reply | Permalink
how long before consumer spending catches up with government spending again?
March 2, 2009 5:47 PM | Reply | Permalink