Thursday, August 11, 2011

More Signs of Weaker Consumer Spending

Everything is to blame - the debt ceiling debate, a slowing economic recovery ( oxymoron? Kind of like "negative growth"...they love that one) - except the real causes - inflation, increased joblessness. It's as if, if you don't have a job, you're not a consumer. Only the ones with jobs who have an income to waste their money on count. But then again, that's how the government tallies the unemployment rate and keeps it so much lower than it actually is.

    CNBC -

    The debt ceiling debate, a slowing economic recovery, and the more recent slide in stocks has given consumers plenty of reasons to be cautious, and it's starting to show up in the numbers.

    "Consumer angst increased in July, as a succession of negative economic headlines and the debt ceiling debate combined to put a damper on consumer spending," First Data said in their report. "Even though input costs have risen with inflation, many merchants have responded by slashing prices in order to spur consumer demand. This trend will have a negative impact on these retailers heading into the peak of the back-to-school shopping season."

Read it all.