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General Category => Economy/Business => Topic started by: mystery-ak on January 31, 2023, 02:40:27 pm

Title: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: mystery-ak on January 31, 2023, 02:40:27 pm

The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
By Bob Hoge | 4:45 PM on January 30, 2023

Although President Biden keeps insisting his economic programs are working great, there are plenty of troublesome signs indicating otherwise, including the all-important rate of consumer spending. Simple rule: if people are buying more things, it generally means they feel good about the state of their finances and the economy.

When folks tighten their belts, however, it’s because they either simply don’t have enough money to purchase more than the essentials, or they’re holding on to their wallets because they fear for the future.

Consumer spending is often known as the “engine of the economy”—and it’s out of gas. The Wall Street Journal reports that Americans are “starting to freak out”:

Quote

Retail purchases have fallen in three of the past four months. Spending on services, including rent, haircuts and the bulk of bills, was flat in December, after adjusting for inflation, the worst monthly reading in nearly a year. Sales of existing homes in the U.S. fell last year to their lowest level since 2014 as mortgage rates rose. The auto industry posted its worst sales year in more than a decade.

https://twitter.com/EPBResearch/status/1619354628759646208

more
https://redstate.com/bobhoge/2023/01/30/the-american-consumer-is-starting-to-freak-out-spending-drops-3-out-of-4-months-n696277

Title: Re: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: Kamaji on January 31, 2023, 02:41:13 pm

It has in my household.

Title: Re: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: LMAO on January 31, 2023, 04:05:53 pm

You mean you all don’t take his “word as a Biden” that America is doing well?

Title: Re: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: Free Vulcan on January 31, 2023, 06:06:01 pm

(https://i.giphy.com/media/4jOqk3ChYjQSk/giphy.webp)

Title: Re: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: DefiantMassRINO on January 31, 2023, 06:38:20 pm

Dear White House Economic Poindexters,
The retail price of Gasoline is not the only measure of the economic health of the unwashed masses.

Electricity is still more expensive.
Eggs are still more expensive.
Home heating oil is still more expensive.
Interest rates are higher.

Transitory, my ass.

Title: Re: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: berdie on January 31, 2023, 08:31:51 pm

Quote from: DefiantMassRINO on January 31, 2023, 06:38:20 pm

Dear White House Economic Poindexters,
The retail price of Gasoline is not the only measure of the economic health of the unwashed masses.

Electricity is still more expensive.
Eggs are still more expensive.
Home heating oil is still more expensive.
Interest rates are higher.

Transitory, my ass.

I honestly don't know how people with kids are surviving.

Title: Re: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: catfish1957 on January 31, 2023, 08:41:18 pm

Spending Drops?  Inflationary economies have consequences.

Last week, FBC reported that U.S. Credit Card Debt as a percent of worth has reached near record numbers.

Unlike the U.S. Government, there is such a thing as a credit card max for those folks who use cards.

Title: Re: The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
Post by: Kamaji on February 01, 2023, 12:58:06 am

Quote from: catfish1957 on January 31, 2023, 08:41:18 pm

Spending Drops?  Inflationary economies have consequences.

Last week, FBC reported that U.S. Credit Card Debt as a percent of worth has reached near record numbers.

Unlike the U.S. Government, there is such a thing as a credit card max for those folks who use cards.

Yes, and when that limit is hit, it starts to filter over into bankruptcies, and since credit card receivables are often collateralized, the contagion will start to spread to investors who hold those assets.