Consumer Spending in U.S. Unexpectedly Declined in April

[marmar]

(Bloomberg) Consumer spending in the U.S. unexpectedly declined in April as incomes stagnated, putting the biggest part of the U.S. economy on shaky ground at the start of the second quarter.

Household purchases, which account for about 70 percent of the economy, dropped 0.2 percent, after a 0.1 percent rise the prior month that was smaller than previously estimated, a Commerce Department report showed today in Washington. The median estimate in a Bloomberg survey of 79 economists called for no change. Incomes (PITLCHNG) were unchanged and prices dropped by the most in more than four years.

The data underscore the risk to the economy from the federal budget cuts that began in March and a higher payroll tax since the start of 2013. At the same time, the housing rebound, stock market gains and cheaper fuel costs are helping underpin household finances and confidence, which will help prevent an extended pullback. .................(more)

The complete piece is at: http://www.bloomberg.com/news/2013-05-31/consumer-spending-in-u-s-unexpectedly-falls-as-incomes-stagnate.html

[KG]

1. 'Unexpectedly?'

[Egalitarian Thug]

5. +1

Bloomberg

[Puzzledtraveller]

11. Let me join you

[xchrom]

2. du rec.

[kelliekat44]

3. Yeah! How's that "austerity thingy" working for you now?

http://www.huffingtonpost.com/2013/05/30/reinhart-rogoff-debunked_n_3361299.html

[HiPointDem]

4. oh my what a surprise who could have forseen

[Puzzledtraveller]

12. as if my chronically empty wallet and bank account didn't tell me this already

[HiPointDem]

13. the ptb are always surprising us

[Renew Deal]

6. The weather was kind of crappy

And too cold for spring cleaning/gardening.

[HiPointDem]

8. and everyone was sick. so they didn't shop as much

also there was some good stuff on tv

and that ufo landing

[Renew Deal]

9. Good point

There were a lot of contributing factors.

[HiPointDem]

10. yes. we must be scientific about it. else someone might try to operate.

[djean111]

7. Well, duh.

[Zorra]

14. Where are the Consumers from? Consumeria? Consumerstan?

Maybe their currency has little value in our country, so they need to save it.

It's the same with us American human beings here in America.

[Bonhomme Richard]

15. Not unexpected by me. n/t

[adieu]

16. Not unexpected at all

sequestration can go so long before the millions furloughed or laid off entirely can't pay for discretionary expenses. That and the summer movies are all pretty sucky.

[tavalon]

17. Well, I went onshort term disability

so I stopped spending. Gotta save for my kiddo's new apartment. Going back to work on Monday, though. Still, I was rarely counted since I use the recycle, reuse motto. If I can't find it at my local thrift stores, do I really need it. I don't think so.

[SoCalDem]

18. April is always a reality check month

People who have to pay to the IRS, spend less that month because they wait until as close to the deadline as possible... (we had to write a check for close to 2K)

for people who charge their Xmas, those bills are still coming in regular as clockwork

we had really bad weather for a LOT of places pretty much all of April..people hunker-in-place when that happens