Consumer Spending – Can’t Seem to Keep Going….
by Tom on October 30, 2009
in Market Musings
In one of the first clear signs that the consumer hasn’t recovered yet and needs that “caffeine injection” of a government stimulus to keep going, we have the September consumer spending reports. What do they show?
That the cash for clunkers boosted spending quite dramatically and then things dropped off quite a bit after that. Now a couple of thoughts on how to look at that:
- Taken at face value, it says that the consumer is running out of steam and is tapped out.
- It might also mean that all we did with the cash for clunkers was borrow 2010’s sales and move them into 2009.
So,what does that portend for the future of housing after the housing tax credit issues are gone?
Tom Vanderwell
Consumer spending retreats after clunkers ends – MarketWatch
WASHINGTON (MarketWatch) — U.S. consumer spending fell sharply in September after the government’s cash-for-clunkers program ended, while after-tax incomes fell for the fourth month in a row, the Commerce Department estimated Friday.
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