Post by dgriffin on Mar 27, 2009 8:56:30 GMT -5
Growth in U.S. Consumer Spending Slowed in February
By Shobhana Chandra
March 27 (Bloomberg) -- Growth in spending by American consumers slowed in February and incomes fell more than forecast, reflecting the toll of a deteriorating job market.
Purchases advanced 0.2 percent after climbing 1 percent in January, the Commerce Department said today in Washington. Much of the February gain was due to an increase in prices, leaving so-called real spending with a decline for the month.
Taken together with the jump in spending in January, today’s report offers a picture of an economy that remains in recession, while the pace of the contraction has eased from the end of last year. Best Buy Co., the largest U.S. electronics retailer, yesterday reported that profit fell less than analysts forecast for the quarter ended Feb. 28.
“We’re certainly not out of the woods by any means, but perhaps we’re seeing some signs of stabilization,” Jay Bryson, a global economist at Wachovia Corp. in Charlotte, North Carolina, said in a Bloomberg Television interview.
www.bloomberg.com/apps/news?pid=20601087&sid=a.Si.DBwNGe4&refer=home
I've read elsewhere that one bothersome facet to this news is that the US economy is 70 percent dependent upon consumer spending. I wonder how we got to that point? I'm guessing it's because we're no longer mining and producing steel and gearing up for large manufacturing operations, or if we are, all the equipment is purchased from overseas. Is there an economist in the house? Help me out here, please.