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

July 25, 2008 7:35:07 AM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Personal Spending Slows to a Crawl in February

Posted Mar 28, 08 11:37 AM CDT in Business 

(Newser) – Personal spending—a major force in the health of the economy— rose just 0.1% in February, its smallest increase in 16 months, the Wall Street Journal reports. The increase, which actually beat analysts' estimate of a 0.1% decrease, came despite a bump in personal income and signs that inflation is easing, the Journal notes.

Another closely watched report today showed that consumer confidence is at a 16-year low, Bloomberg reports. The Reuters/University of Michigan index of consumer sentiment fell to 69,5 in March, down from 70.8 in February. The momentum is still down, and I expect we will see negative spending numbers in the second quarter,'' said one economist.

Sources Wall Street Journal, Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Stimulus' Boost Seen; How Long It Lasts Unsure

    Jun 27, 08 2:22 PM CDT
    Stimulus' Boost Seen; How Long It Lasts Unsure The government's stimulus package has worked—for now at least, the New York Times reports. Spending rose 0.4% last month, the Commerce Department said today, buoyed by the $50 billion in checks sent to consumers. But subtract the stimulus, and income levels rose only modestly, and wage growth lagged well behind inflation. More »

  • Economy Grew at a Crawl in First Quarter

    Apr 30, 08 8:44 AM CDT
    Economy Grew at a Crawl in First Quarter The US Gross Domestic Product rose at a 0.6% annual pace in the first quarter, despite the widespread belief that the economy is in recession, Bloomberg reports. The number stayed positive thanks to a surge in inventories, which offset flagging consumer spending and business investment. “We think we're in recession, but I don't know that the GDP numbers are going to turn negative at all in 2008,” said one economist. 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 »

  • Retailers Checking Out as Economy Falters

    Apr 15, 08 8:00 AM CDT
    Retailers Checking Out as Economy Falters Stores across the country are closing their doors, the New York Times reports, victims of a downturn in consumer spending. Retailers are often heavily leveraged, and as the economy falters banks are tightening credit. Several chains, including Sharper Image, have declared bankruptcy; others like Footlocker, Ann Taylor, and Zales are closing stores to stay afloat. “You have the makings of a wave of significant bankruptcies,” said a former Kmart executive. More »

  • Wall Street Sneezes; Heartland Catches Cold

    Mar 21, 08 11:36 AM CDT
    Wall Street Sneezes; Heartland Catches Cold The high-profile economic woes plaguing Wall Street and previously hot housing markets are spreading, raising the possibility of the worst recession Americans have faced in years. The New York Times crisscrosses the country, assembling anecdotal evidence—suddenly thrifty brides, unsold construction equipment, sinking earnings at FedEx—that suggests the slowdown could drag into 2009. More »

A shopper looks at discounted rain boots in the Gap store at the Great Mall in Milpitas, Calif., in this Nov. 23, 2007 file photo.   (AP Photo/Marcio Jose Sanchez, file)
Customers examine computers at Best Buy Wednesday, Feb. 27, 2008, in the Atwater Village section of Los Angeles.   (AP Photo/Ric Francis)
Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee in this file photo from Wednesday, Feb. 27, 2008.   (AP Photo/J. Scott Applewhite)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Tags

recession  • inflation  • economy  • consumer spending  • income  • Commerce Department  • savings


Loading...

Loading...

Today's Most Popular


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 »