Welcome, Guest Login | Signup | Portfolio | Bookmark | Contact
Markets

Symbol Name
Click for Symbol Help




Consumer Spending in U.S. Declines as Sandy Reduces Wages

Bloomberg - Nov 30, 2012

Americans unexpectedly pared spending in October as superstorm Sandy depressed wages, showing the world’s largest economy is cooling as lawmakers seek ways to avoid the so-called fiscal cliff.

The 0.2 percent decrease in purchases followed a 0.8 percent gain, Commerce Department figures showed in Washington. Adjusted for inflation, the decline was 0.3 percent, the biggest in more than three years. Incomes were little changed last month as the biggest Atlantic storm to ever hit the U.S. shaved $18.2 billion in wages at an annual rate.

“The outlook for consumer spending is tenuous,” said Jacob Oubina, a senior economist at RBC Capital Markets LLC in New York. “We’re already on soft footing and you’re now in an environment where the risks to confidence are increasing because of the fiscal cliff.”

The possibility that lawmakers will not find common ground to prevent about $607 billion in tax increases and government spending cuts from taking effect next year raises the risk that gains in consumer confidence will be reversed as the December deadline nears. Combined with revisions yesterday showing household spending decelerated last quarter, today’s data help explain why the Federal Reserve has geared its policy toward stoking job growth.

Read Full Article from Bloomberg

- Posted: 2012-11-30 15:27:32


 More Stock Investor Place Top Stories  
Anglo platinum arm sheds 14,000 jobs, risking unrest
Apple falls below $500
US retail sales rose 0.5 percent in December, led by autos, furniture and clothing sales
Recovery in U.S. Saving 8 Million Underwater Homeowners
Facebook shares rise in buildup to mystery event, earnings

 Stock Investor Place Top Stories Archive
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008















Featured Companies | My Place | News | Markets | Big Board | Blogs | Products & Services

Copyright 2024 Stock Investor Place Inc. All Rights Reserved.
Disclaimer - Terms of Use - Privacy Policy - Advertise