US consumer spending slips in December as auto sales weaken

[Omaha Steve]

Source: AP

WASHINGTON (AP) — U.S. consumer spending slipped in December, as the pace of motor vehicle sales slowed and more Americans saved their money.

The Commerce Department said Monday that consumer spending fell 0.3 percent in December, compared to a 0.5 percent increase in November. Cheaper gasoline and fewer auto sales accounted for most of the decline. Energy prices tumbled 5.2 percent in December for the sixth straight monthly decline.

Personal income rose 0.3 percent in December, aided by the steady wave of hiring over the past year. But rather than spend those gains, consumers saved 4.9 percent of their disposable income, up from 4.3 percent in November.

Despite the decrease, several indicators show that Americans are growing more comfortable about the economy and are spending money again.

FULL story at link.



In this Thursday, Nov. 28, 2013 photo, a woman pays cash while checking out at a Target Store in Colma, Calif. The Commerce Department reports on consumer spending and income in December, on Monday, Feb. 2, 2015. (AP Photo/Jeff Chiu)

Read more: http://bigstory.ap.org/article/333f96cd782d48bebcb97bf060de36fe/us-consumer-spending-slips-december-auto-sales-weaken

[fasttense]

1. So spending slips and sales weaken yet.....

Yet........"Despite the decrease, several indicators show that Americans are growing more comfortable about the economy and are spending money again."

From sad to glad all in one article. Can you say propaganda?

So, how good was the AP's reporting when the 2008 crash happened? They predicted the economic crash when it started in Dec. 2007, right?

[DeSwiss]

2. I believe December is the one month in which consumer spending......

...is supposed to save retailers from the anemic sales of the previous eleven each year, isn't it?

- Bummer.

[progree]

5. They are seasonally adjusted numbers (not that that's an exact science)

Last edited Mon Feb 2, 2015, 02:37 PM - Edit history (1)

http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm

as are almost all of the economic statistics from the Commerce Dept. and Bureau of Labor Statistics that one sees reported in the media (I can't think of any exceptions).

[Andy823]

3. Auto sales always down in December

My father in law was in the car business, as was his father for decades. December was "always" a bad month. The best time of the year to buy and get good deals, he told me, was in December since dealers are more willing to make deals because of the low sales volume during that month.

To use car sales as and example of consumer spending slipping in December is crazy. and only done to push the right wing agenda of things being so bad.

[durablend]

4. Wait until gas prices shoot up again!

Which won't be long until it happens

[progree]

6. THESE ARE SEASONALLY ADJUSTED NUMBERS. I REPEAT, THESE ARE SEASONALLY ADJUSTED NUMBERS.

http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm

As are almost all the statistics from the Commerce Dept. and the Bureau of Labor Statistics etc. reported in the media (I can't think of any exceptions).

So let's cut the "this is terrible terrible news, aren't December sales supposed to be bigger than every other month"? gnashing of the teeth that I see in some of the responses. Please.

Also, note that this is a report on what happened last December, as reported by the Commerce Dept., not a prediction of the future by the AP.

Please see the "Beware the tricks of the economic pundits out there" section at http://www.democraticunderground.com/111622439