Question about consumer spending?

[novice1027]

I keep hearing about how consumer spending is still up, so we have nothing to worry about, no recession on the horizon, because “we are still spending, spending, spending.”
My question, one that I never hear being raised on the MSM is….If consumers are all still spending but it is primarily on credit, doesn’t that change things? No one ever seems to ask this question. It would appear to me that at some time when it catches up, not only is the spending going to stop, but everyone will be in dept up to their eyeballs. It seems all to clear to me, but I’m just a “novice” in this arena.
Any thoughts?

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[bubba99]

First, the number is B.S.

In the breakdown of consumer purchases, spending on non-durable goods which include food and gasoline was up 2.0 pct, while spending on durables rose just 0.3 pct.

The same pattern appears in the inflation statistics. The PCE index for non-durables rose 1.4 pct, while the price indexes for durables actually fell 0.2 pct, and the index for services was up 0.3 pct.

That suggests the 1.1 pct spending jump was inflated by the price effects of more expensive energy and food. Real, inflation-adjusted spending was up just over half as much, 0.5 pct.

Worse still for consumers, their disposable personal incomes — after inflation and taxes — fell 0.3 pct, the worst reading since a minus 0.6 pct in April of this year.

above from:
http://www.forbes.com/afxnewslimited/feeds/afx/2007/12/21/afx4467450.html

So yes, maybe more credit card debt, and maybe way more cc interest because of rate increases on borrowers, but all in all, just another chapter in confuse and confound the american public.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[novice1027]

Thanks Bubba,
Why don’t they include food and gasoline in the numbers? Or is that just more of the same BS? The 2 things that we can’t do without and the prices are rising all the time. The more I learn, sometimes the more confused I become, lol.

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

[nostradamus]

It must be these consumers doing the spending:

http://www.cbsnews.com/stories/2007/12/23/business/main3643715.shtml

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