U.S. Consumer Spending Rises After Six Straight Drops

[Wretched Excess]

sometime I wonder why anyone bothers to publish the "predictions" of the same economic experts that didn't see the second coming of the great depression in the first place.

it's both alarming and quite depressing that the Obamagator just doesn't seem to give a damn about how far the economy falls;  with every additional bit of bleak news, or failing industry, or round of layoffs, he just adds another government takeover to yet another heretofore unknown bit of 5,000 page legislation. 

U.S. Consumer Spending Rises After Six Straight Drops

 March 2 (Bloomberg) -- Consumer spending rose in January for the first time in seven months as Americans took advantage of post-holiday discounts, a gain that’s unlikely to last because of the surge in joblessness.

The 0.6 percent increase was larger than anticipated and followed a 1 percent decrease in December, the Commerce Department said today in Washington. The report showed the Fed’s preferred measure of inflation dropped in January.

Retailers from J.Crew Group Inc. to Saks Inc. and Limited Brands Inc. have cut jobs in the past week, anticipating a further deterioration in spending and contributing to the deepest employment slump since the end of World War II. Stock-indexes reached the lowest levels in more than a decade as investors soured on the economy’s outlook.

“I don’t think we are at the point yet where we can reasonably expect to see consistent increases in income and spending,” said David Resler, chief economist at Nomura Securities International Inc. in New York.

The Standard & Poor’s Stock Index fell 2.3 percent to 717.89 at 10:21 a.m. in New York after touching a 13-year low. Benchmark 10-year Treasury yields dipped to 2.94 percent from 3.02 percent at last week’s close. The dollar advanced 0.5 percent to $1.2610 on a jump in demand for the U.S. currency as a haven.

More

[thundley4]

I think that some didn't see this "greater depression" coming, because they failed to take into account the rapidity with which 0Bama would socialize the country.

[Wretched Excess]

I think that some didn't see this "greater depression" coming, because they failed to take into account the rapidity with which 0Bama would socialize the country.

I think it's because economic forecasts in general are maybe a step more advanced that indian rain dances and voodoo doctors.

[thundley4]

I think it's because economic forecasts in general are maybe a step more advanced that indian rain dances and voodoo doctors.

That could be, and the fact that 0Bama kept talking down the economy and driving fears even after the election. The MSM played into this knowing that a failing economy would be the perfect cover for pushing through a leftist agenda.  Remember Rahm quote, (paraphrasing), Never let a crisis go to waste.

[DumbAss Tanker]

I'm kind of tired of the whole "Second Great Depression" meme, that might be true if the unemployment rate hit 20% without slowing down on its way to 30%, but we're nowhere close to that and don't seem to be headed that way.  It's pure hyperbole.

But back to the OP subject, a one month uptick after a solid six month trend does not a recovery make.  When there are two successive months of upward movement with a third projected, then I'll buy into it.

[Wretched Excess]

I'm kind of tired of the whole "Second Great Depression" meme, that might be true if the unemployment rate hit 20% without slowing down on its way to 30%, but we're nowhere close to that and don't seem to be headed that way.  It's pure hyperbole.

But back to the OP subject, a one month uptick after a solid six month trend does not a recovery make.  When there are two successive months of upward movement with a third projected, then I'll buy into it.

television ratings are down.  it's a depression, and people need to watch the news, dammit.

[NHSparky]

Spending went up?  Another example of the fact that even a dead cat bounces once in a while.