Drop in spending worst since 9/11

[DemMother]

"U.S. consumer spending in June took its biggest plunge since September 2001 as shoppers, sapped by high energy costs, cut back sharply on car purchases, a government report showed on Tuesday.

Personal spending dropped 0.7% in June after climbing 1% in May, according to Commerce Department data. Wall Street had braced for a mild 0.1% drop."

http://moneycentral.msn.com/content/invest/extra/P91024.asp?GT1=4529


This can't be good for Bush

[spotbird]

1. Prosperity is just around the corner.

Half of all Americans support Bush because he gets results.

[Ripley]

2. Reason for drop #373...

It's freaking HOT!

[SquireJons]

14. It's Clinton's fault.

As always...

[truthisfreedom]

20. it's not JUST Clinton. it's still the damned CLENIS!

don't'cha know.

[Walt Starr]

3. We've turned the corner!

WATCH OUT FOR THE BRICK WALL!!!!!!

[RobertSeattle]

4. These stories always bug me

You can hear in the same business newscast "Saving is critical to the economy" and "Spending is critical to the economy". Saving and spending net to a zero sum. My head hurts.

[Ripley]

6. Just like their contortions on everything economic...

The dow is over 10,0000...Hooray! It's roaring!

The dow is under 10,000. *chirp chirp*

More Americans own homes than every before!!! Proof of a roaring economy!

Foreclosures at all-time high. Housing starts plummet. *chirp chirp*

[Doctor Smith]

9. Apparently, we are doing neither, so don't worry about it.

We are quite good at borrowing, though.

[Barkley]

18. But spending counts in the GDP and savings does not.

That's spending on NEW goods and services not spending used cars or clothing.

Savings is critical because it used to finance business investment spending which is part of GDP.

Our savings rate is low, so we borrow the money from other countries.

[spotbird]

5. THE BUSH BOOM: ECONOMY BREAKS 30 YEAR OLD RECORD

Posted on 08/03/2004 7:59:25 AM PDT by KMC1


NEW YORK - The economy has set yet another benchmark in the recovery under the present administration. U. S. manufacturing has expanded for a record 14th straight month and a new report says hiring in the factory sector is still on the increase.

The Institute for Supply Management said its index of national factory activity rose from 61.1 the month previous to 62.0 in July. (Any number above 50 demonstrates growth.)

The index has stayed above 60 for another record - nine months.

The employment sector of the index showed growth as well as the rating came in at 57.3 down from 59.7 in June. (Again anything above 50 demonstrates expansion.)

Many analysts were fearing a larger drop in the jobs index - but those fears did not materialize.

New orders for factories rose from 60.0 in June to 64.7 in July. Inventories fell to 49.9 from 51.1.




WMCA-NY ^ | 8.3.2003 http://kmclive.com/


see also: http://www.freerepublic.com/focus/f-news/1184087/posts

[NewYorkerfromMass]

7. Thanks for the freeper link! This post is gold:

"LOL! The 'bots on this forum sure are franticly desperate to overhype this ISM report.
This must be at least the 9th or 10th version of this story that I've seen posted. And there's no doubt that the talking-point lemmings have posted other threads that I've missed.

The truth is, Ditto, that this report is flagrantly misleading.
It is a survey of Purchasing Managers, NOT Manufacturing Managers.
The Purchasing Managers erroneously take full credit for finished goods produced while ignoring the ever-increasing proportion of imported materials, parts and components that THEY outsourced offshore. IOW, their report is fastly morphing into an index of warehousing and distribution activity, NOT manufacturing.

Get a clue, Ditto.
The overall megatrend in globalization is for the United States to develop a modern "post-industrial society" and flourish during the "Information Age" with a bustling "Service-based Economy".
Have you ever heard any of that terminology, Ditto?
Or is your head inserted to high up your backside to understand what it means?

Frankly Ditto, by overhyping this misleading propaganda, YOU'RE the ones who are shooting Dubya in the foot and enabling Kerry by destroying Dubya's crediblity on the issue...."

http://www.freerepublic.com/focus/f-news/1184087/posts?page=20#20

[nolabels]

10. "enabling Kerry by destroying Dubya's crediblity"

Sounds like great fun, where do i sign up?

[74dodgedart]

8. I wonder how much is related to supplying the war effort..

[progressivebydesign]

11. .. and now with the 'all terror warnings, all the time' it'll get worse NT

[Tsiyu]

12. Back to School

sales might pump it up in the next month, but if the poor keep getting poorer and the middle class disappears, what do they expect? It's like cutting taxes and waging an expensive war. Linking "Cause and effect" doesn't seem to be a facet of the current administration's plans. Unless they want us all to be penniless. Hmmmmmmmmmm

[The_Casual_Observer]

13. 2 months ago the pundits speculated that gas prices

were irrelevant, since in "real" terms it is much less important than 20 years ago and blah blah blah. As expected, as reality sets in, they are all changing their tune. Honestly, you have to wonder how they could be so naive. The price of gasoline rules everything. The health of the world economy depends on the price of oil.

[fearnobush]

16. Its not so much gas, its really the shitty value of the dollar and the

enemic rate of wage increase. Wait for Fridays jobs report for June. If this number is bad - 100,000 or less jobs... Bu$h is in real real bad shape.

[The_Casual_Observer]

17. Gas underlies all this stuff

Clinton's economic miracle is due in large part to the relative stability of the middle east & low oil prices. A very comprehensive Frontline about a year or so ago explored this and confirmed my long ongoing observation on this.

[Jane Austin]

15. Not good for Bush, and not good for this retail owner, either.

Thanks, Dubya.

[Barkley]

19. Those "Orange Alerts" have got to be keeping people out of the malls and

discourage consumer spending. But don't tell Dubya!