Skip to: Content
Skip to: Site Navigation
Skip to: Search

May 17, 2008 1:33:33 AM CDT

Learn about Newser Points »

Back to the grid

Consumer Spending Stalls Again  

Posted Feb 29, 08 12:03 PM CST in Business    Most Covered

(newser) – Consumer spending rose more than expected in January—but only because prices did so as well, Bloomberg reports. Adjusted for inflation, spending remained flat for the second straight month. With fuel costs rising, banks restricting loans, and property values falling, “consumers are clearly hard-pressed to maintain their standard of living and are cutting back,” says an analyst.

“The big issue is the fact that inflation is accelerating, and it's taxing consumer spending,” says another economist. “The first half is not going to look all that good.” The Fed saw a 4-month-high rise in inflation of 0.3%. One homebuilder warned of a self-fulfilling prophecy, noting that “ceaseless talk of a recession” could be a culprit in falling consumer confidence.

Source Bloomberg

open commentscomments (0)

Editor Recommended

Inflation deletes spending gain
Wall Street Journal | Feb 29, 08

More figures on early '08
MarketWatch | Feb 29, 08

Related News

  • Restaurants, Retailers Gulp as Consumers Tighten Belts

    Apr 27, 08 11:46 AM CDT
    Restaurants, Retailers Gulp as Consumers Tighten Belts The rising price of staples like milk and gas, coupled with layoffs and flat-lining wages, is creating a nation of penny-pinching consumers, the New York Times reports. Industry is taking notice as buyers substitute generic brands for top-of-the-line products and skip eating out at restaurants. More »

  • Consumer Confidence Hits 26-year Low

    Apr 25, 08 10:59 AM CDT
    Consumer Confidence Hits 26-year Low Consumer confidence fell to a 26-year low in April, as the public fretted over inflation and housing, Reuters reports. The index fell to 62.6, surpassing the 63.2 analysts had predicted. Nearly 90% said the economy is in recession. Respondents also said they were unlikely to spend their stimulus or tax-rebate checks, planning instead to save them or pay down debt. More »

  • Fed Ponders Pause in Rate Cuts—After 1 More

    Apr 24, 08 10:05 AM CDT
    Fed Ponders Pause in Rate Cuts—After 1 More The Federal Reserve may be ready to cool its torrid rate-cutting after a likely .25% percentage point cut at its meeting next week, the Wall Street Journal reports. Futures markets are betting Chairman Ben Bernanke is unlikely to rest just yet, with little change in the month-to-month economic picture, but will pause after that to assess the cuts' effect and avoid stoking inflation. More »

  • US Drops 80,000 Jobs, Biggest Loss in 5 Years

    Apr 4, 08 8:00 AM CDT
    US Drops 80,000 Jobs, Biggest Loss in 5 Years Unemployment surged in March to 5.1%, the worst it’s been since September 2005, reports the Wall Street Journal. The country lost 80,000 non-farm jobs last month after dropping 76,000 jobs in both January and February. The third sharp drop fuels fears that the US has slipped into a recession and may prompt another interest rate cut by the Fed. More »

  • Bernanke: Adjustment Is Mostly Over

    Apr 2, 08 10:24 AM CDT
    Bernanke: Adjustment Is Mostly Over Ben Bernanke for the first time acknowledged the possibility of a US recession, but he also voiced optimism that “much” of the adjustment period was over, the Wall Street Journal reports. His testimony before Congress seemed to suggest an end to aggressive stimulus measures—noting that rates had already been cut “substantially” and inflation was still a “source of concern.” More »

Consumer Spending Stalls Again
A pedestrian makes her way past a window display outside a Santa Monica, Calif., clothing store, Friday, Sept. 21, 2007. (AP Photo Damian Dovarganes)   (Associated Press)
Consumer Spending Stalls Again
Melanie Rudnick, left, and Lisa Luzzi shop at Steve & Barry's store in New York in this Aug. 16, 2007 file photo. "Consumers are clearly hard-pressed to maintain their standard of living and are cutting...   (Associated Press)
Consumer Spending Stalls Again
A woman walks past a Victoria's Secret store, Thursday, Jan. 10, 2008, in Cleveland. "There is no growth in consumption except to keep up with price increases," said Chris Low, chief economist at FTN...   (Associated Press)
Consumer Spending Stalls Again
Unsold 2007 PT Cruisers sit at a Chrysler-Jeep dealership in the east Denver suburb of Aurora, Colo., on Sunday, Aug. 19, 2007. (AP Photo/David Zalubowski)   (Associated Press)
prev   next
play

Threads (1 of 1)

Tags

US economy  • Federal Reserve  • recession  • inflation  • consumer spending  • consumer confidence  • fuel costs


Loading...

Loading...

Related Thread: Is It Recession?

Next story from this section »

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »