Consumer Spending, Personal Incomes in U.S. Unexpectedly Stagnated in June

[marmar]

Aug. 3 (Bloomberg) -- Consumer spending and personal incomes in the U.S. unexpectedly stagnated in June, showing a lack of jobs is hurting the biggest part of the economy.

The little changed reading on purchases followed a 0.1 percent gain the prior month that was smaller than previously estimated, Commerce Department figures showed today in Washington. Incomes didn’t increase for the first time since September and the savings rate rose to a one-year high.

Demand may take time to improve as the unemployment rate hovers near a 26-year high, shaking confidence in the economic recovery. At the same time, Federal Reserve Chairman Ben S. Bernanke yesterday said consumer spending, which accounts for about 70 percent of the economy, may “pick up” as wages rise.

“Consumers are still a bit cautious,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, who forecast spending would be unchanged. “The biggest driver for spending is going to be jobs. You need stronger economic growth to generate job growth.”

Stock-index futures held earlier losses after the report. The contract on the Standard & Poor’s 500 Index fell 0.1 percent to 1,120.3 at 8:46 a.m. in New York. Treasury securities climbed, sending the yield on the benchmark 10-year note down to 2.91 percent from 2.96 late yesterday. ...........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=autbdtb.obts&pos=2

[Deep13]

1. How much of this is big business holding back...

...until after the elections?

[villager]

2. For whom was it unexpected?

:shrug:

[marmar]

3. The rocket scientist headline writers at Bloomberg....

Or should I say, the completely disconnected from everyday people's reality headline writers at Bloomberg

[Subdivisions]

4. UNEXPECTED is the new normal in economics. No one knows what the

hell is going to happen and everything that does is unexpected. And we allow these clueless people run our economic policies.

[MadHound]

5. Again, that word "unexpected."

You can't have sixteen percent of your workforce unemployed and think that your economy is going to do well. Until we have serious, long term job creation in this country our economy is going to, at best, stagnate, or worse, continue to decline.

[Lost4words]

6. only a fool would think or say otherwise

or someone who is continuing to profit from our demise

[lib2DaBone]

7. I'm watching the Senate "State of The Economy" hearings on C-SPAN...

You talk about a group of Senators and Economists that DO NOT HAVE A CLUE!

They are using words like "sluggish", "Jobless Recovery", "Weak Consumer Spending"..

They are so isolated from reality that they will never be able to see clear...

The only exception was Bernie Sanders (I-Vermont). He gave them hell and they all snickered at him behind his back.

Some of their suggestions so far: Do away with the Mortgage Interest Deduction, Create a National Sales Tax, Do away with Medicare, slash Social Security, raise taxes on the working poor.

* 18,000 U.S. Companies use 1 room in a house in the Cayman Islands as their domicile so they pay not one penny in taxes. (Sen Kent Conrad-D N.D. ) sits there with that deer in headlights look.. um frigging real..)

[prolesunited]

8. They cut off unemployment to millions for TWO months!!!

What the hell did they expect to happen? I didn't hardly grocery shop or drive for those two months, and I certainly didn't go out and buy crap, not that I'm doing that at all

If all goes well, I *might* get some money next week, so that will be almost 10 weeks with nothing. Not like I have a ton of savings to tap into. Luckily, my dad fronted me my mortgage payment for July. I bet many were forced into foreclosure and we'll see a headline that economists are "surprised" that foreclosures spiked.

And I guess the gambit didn't work. They cut off the money flow, but millions of people didn't magically find jobs because there are NO NEW JOBS!

[Raineyb]

9. Unexpectedly?

Wow these people really need to buy a clue.