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Consumers Open Wallets Wide

Spending index records biggest increase since July 2005

By Jonas Oransky, Newser Staff

Posted Dec 21, 2007 11:14 AM CST

(Newser) – Consumer spending grew 1.1% in November, its biggest rise since July 2005. The better-than-predicted figure accompanied a revised 0.4% October gain, adjusted from 0.2%. Taken together, the numbers “postpone fears of a recession at least until next year,” said one economist. Jobs numbers and salaries were up, Bloomberg reports, potentially staving off a spending collapse.

The news wasn’t all good, though,: Disposable income—funds left after taxes—decreased 0.3% when adjusted for inflation. Retail surveys also show shopping cooling in December. Best Buy’s chief executive countered that the holiday season has started slowly in recent years, and the lag shouldn't be a cause for concern.

College student Stephanie Sequeira, right, buys herself a MacBook Pro while holiday shopping with her friend, Gillian Walsworth, center, at the Apple Store San Francisco. Research by Student Monitor shows... (Associated Press)

Customers shop at a Target store in Lombard, Ill., on Thursday, Dec. 6, 2007. Retailers reported mixed sales for November despite the strong start to the holiday shopping season. (AP Photo/M. Spencer... (Associated Press)

Gina Vieira, right, of Toronto, and daughter Cairo, 10, make their way to the exit to drop off packages after shopping at the Walden Galleria in Cheektowaga, N.Y. in this Friday, Nov. 23, 2007 file photo.... (Associated Press)

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Unemployment Rate Hits 5-Year High of 6.1%

Factory workers hit hardest as unforeseen fall in jobs stuns economy

Next 12 Months: No Recession, but Slow Growth

Risk of recession at 26%; unemployment likely 9% at year's end

Brace Yourself for Even Worse 2nd Recession

Could devastate a still-ailing economy, writes Catherine Rampell

Recession Worse Than Thought; GDP Growth Weak

Economy grew just 1.3% over past three months

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With no consumer spending, economy keeps dragging

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Consumers Open Wallets Wide

Spending index records biggest increase since July 2005

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OTHER STORIES ON OUR RADAR

recession • consumer spending • Best Buy • job

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Unemployment Rate Hits 5-Year High of 6.1%

Factory workers hit hardest as unforeseen fall in jobs stuns economy

Next 12 Months: No Recession, but Slow Growth

Risk of recession at 26%; unemployment likely 9% at year's end

Brace Yourself for Even Worse 2nd Recession

Could devastate a still-ailing economy, writes Catherine Rampell

Recession Worse Than Thought; GDP Growth Weak

Economy grew just 1.3% over past three months

It's the Busted Consumer Bubble, Stupid

With no consumer spending, economy keeps dragging

About Us

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Newser By Users

Community

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