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Consumers spend more, save less in September
Marketwatch ^ | 10.28.11 | Jeffry Bartash

Posted on 10/28/2011 6:08:27 AM PDT by Free Vulcan

Personal income rose a seasonally adjusted 0.1% last month, while consumer spending jumped 0.6%, the Commerce Department reported.

Americans paid for goods and services — autos were a big seller last month — largely by drawing on their savings or taking on more debt. The personal savings rate fell from 4.1% to 3.6%, marking the lowest level since December 2007...

...Inflation, meanwhile, rose 0.2% in September based on the latest reading from the personal consumption expenditure price index. The PCE index has increased 2.9% over the past 12 months

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: income; pce; personal; spending

1 posted on 10/28/2011 6:08:28 AM PDT by Free Vulcan
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To: Free Vulcan

Since these are Commerce Dept. numbers, how do we know we can trust their stats? Who’s checking the admin’s number crunchers?


2 posted on 10/28/2011 6:10:29 AM PDT by mewzilla (Forget a third party. We need a second one.)
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To: mewzilla

Well in all fairness Gas was rather cheap in September, however Oil is back up over $90 and I think gas prices will go back up..


3 posted on 10/28/2011 6:12:03 AM PDT by KevinDavis (Obama is siding with the American Nazi Party with the OWS Protestors..)
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To: mewzilla

It doesn’t really make sense. Why in the world would we be spending more in this environment? (I would imagine that most cash-strapped families would be saving for x-mas...I know we are)


4 posted on 10/28/2011 6:13:13 AM PDT by marstegreg
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To: mewzilla
Since these are Commerce Dept. numbers, how do we know we can trust their stats? Who’s checking the admin’s number crunchers?

Exactly. "Everything about socialism is sham and affectation." - 23.11 Ch.23 Evil; Economic Harmonies; Frederic Bastiat 1801-1850

In this socialist's economy, I've spent less and saved more.

DEFUND socialist collectives, foreign and domestic.

5 posted on 10/28/2011 6:16:52 AM PDT by PGalt
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To: marstegreg
It doesn’t really make sense. Why in the world would we be spending more in this environment?

Could be just blowing off steam. It's been two years since the meltdown. Two years of deleveraging. In my household, we're debt-free except for an above-water mortgage refinanced down to under 4%, with about 8 years to go until it's paid off.

We've mostly been buying stocks, but we can buy stuff here and there. The cellar is stocked with emergency supplies. Income is fine. Actually, the last two years for us haven't been bad at all.

6 posted on 10/28/2011 6:21:10 AM PDT by Huck (TAX TEA NOW==SUPPORT 9-9-9!)
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To: PGalt

I’ve just gone about my regular business, with no regard for the rogues in DC.


7 posted on 10/28/2011 6:22:03 AM PDT by Huck (TAX TEA NOW==SUPPORT 9-9-9!)
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To: Free Vulcan
Sorry... an analyst on abc had a rare truthful moment and explained that SAVINGS were spent... consumers are dipping into savings to buy necessities.

LLS

8 posted on 10/28/2011 6:24:52 AM PDT by LibLieSlayer ("Americans are hungry to feel once again a sense of mission and greatness." Ronaldo Magnus)
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To: LibLieSlayer

Gas is going back up..


9 posted on 10/28/2011 6:29:14 AM PDT by KevinDavis (Obama is siding with the American Nazi Party with the OWS Protestors..)
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To: KevinDavis
That is true... and that puts pressure across a family's budget.

LLS

10 posted on 10/28/2011 6:31:47 AM PDT by LibLieSlayer ("Americans are hungry to feel once again a sense of mission and greatness." Ronaldo Magnus)
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To: marstegreg

We’d be spending more just due to inflation. But I’d still like to know who, if anyone, is checking the admin’s math.


11 posted on 10/28/2011 6:35:52 AM PDT by mewzilla (Forget a third party. We need a second one.)
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To: Huck

IIRC, most retailers make most, if not all, of their profits in the last quarter. Spending should be up. But even if spending is up, doesn’t mean margins are. Wish we just had some trustworthy numbers to look at.


12 posted on 10/28/2011 6:38:13 AM PDT by mewzilla (Forget a third party. We need a second one.)
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To: mewzilla

We’d be spending more just due to inflation. But I’d still like to know who, if anyone, is checking the admin’s math.

Now that makes sense! I didn’t account for inflation! I wonder what the (real) rate of inflation is and how it pertains to those numbers.


13 posted on 10/28/2011 6:43:27 AM PDT by marstegreg
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To: Free Vulcan
I can believe it. I am a small business person and people were buying diddly and squat in August. In September they bought normally plus a little more to make up for August frugality.

October we are back to normal.

14 posted on 10/28/2011 6:45:34 AM PDT by Harmless Teddy Bear (*Philosophy lesson 117-22b: Anyone who demands to be respected is undeserving of it.*)
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Do You Love FR?

Click The Flag To Support Your Forum

Then Keep Your Forum Running And Donate

15 posted on 10/28/2011 7:12:50 AM PDT by DJ MacWoW (America! The wolves are here! What will you do?)
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To: marstegreg
Why in the world would we be spending more in this environment?

Rising prices. We're spending more money to buy the same number of goods -- or maybe fewer. GDP is supposedly adjusted for price inflation, but it's a guess; and that guess is always on the low side.

The only reason GDP can increase at all is inflation. If the number of dollars were held stable, GDP would never change -- it couldn't. That doesn't mean the economy couldn't grow -- prices would be forced down.

But GDP would be exposed for what it is. A nonsense measurement.

16 posted on 10/28/2011 7:27:07 AM PDT by BfloGuy (Even the opponents of Socialism are dominated by socialist ideas.)
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To: BfloGuy

So we’re being gouged again, just in a different way?


17 posted on 10/28/2011 7:31:34 AM PDT by marstegreg
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To: marstegreg

You can get by without spending for a couple of years, but eventually things wear out. Those who have been paying down debt or saving large sums of money may be thinking OK, the car is 13 years old and has 226,000 miles, something has to be done.


18 posted on 10/28/2011 7:32:35 AM PDT by proxy_user
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To: Free Vulcan

Then Happy Days are here again?.....Bullcrap!
No way in hell I would buy a new car now and take on that kind of debt with this Turd in charge!


19 posted on 10/28/2011 8:01:20 AM PDT by AngelesCrestHighway
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To: KevinDavis
Gas is going back up..

The station I fill up at dropped from $3.27 - $3.11 within the past two weeks.

20 posted on 10/28/2011 10:47:28 AM PDT by Arrowhead1952 (Dear God, thanks for the rain, but please let it rain more in Texas. Amen.)
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To: Arrowhead1952; All

Well in my area (granted I’m from Illinois).. The avg price is from 3.36 - 3.55 per gallon..


21 posted on 10/28/2011 1:26:07 PM PDT by KevinDavis (Obama is siding with the American Nazi Party with the OWS Protestors..)
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To: KevinDavis

Our future son in law actually got gas for less than $3.00 (2.96 or something like that) in Houston last month. He took our daughter’s car and filled it too.


22 posted on 10/28/2011 1:37:56 PM PDT by Arrowhead1952 (Dear God, thanks for the rain, but please let it rain more in Texas. Amen.)
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To: Huck
Could be just blowing off steam. It's been two years since the meltdown. Two years of deleveraging. In my household, we're debt-free except for an above-water mortgage refinanced down to under 4%, with about 8 years to go until it's paid off.

We've mostly been buying stocks, but we can buy stuff here and there. The cellar is stocked with emergency supplies. Income is fine. Actually, the last two years for us haven't been bad at all.

HOORAY Huck household! I would suspect that most conservatives would be in (or trending to) that same position.

I’ve just gone about my regular business, with no regard for the rogues in DC.

I've definitely cut back on unnecessary spending, which has helped me to paydown debt. Yes, we are stocking some basic food supplies, some ammo and everyone in the family now has a firearm. I've defunded every known socialist/enterprise/collective that I'm aware of.

23 posted on 10/29/2011 7:51:55 AM PDT by PGalt
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To: Free Vulcan

“...largely by drawing on their savings or taking on more debt.”

And the third option is ?


24 posted on 10/29/2011 7:54:56 AM PDT by PLMerite (Shut the Beyotch Down! Burn, baby, burn!)
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To: PGalt

Yeah, I’m still working on the firearm situation.


25 posted on 10/29/2011 8:05:42 AM PDT by Huck (TAX TEA NOW==SUPPORT 9-9-9!)
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To: BfloGuy

Interesting observation & GREAT tagline. Thanks.


26 posted on 10/29/2011 10:22:23 AM PDT by PGalt
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To: proxy_user
You can get by without spending for a couple of years, but eventually things wear out. Those who have been paying down debt or saving large sums of money may be thinking OK, the car is 13 years old and has 226,000 miles, something has to be done.

Mine is 14 yrs old with over 300,000 miles, and my right ball joint just went on Thursday while driving to work. Rather than get a newer used, I'm having the necessary repairs done. Less $. The money going out of my pocket (more so than ever before) is for "must have" (in order to live/eat/work) items. I'll resume normal spending habits if we ever get a conservative President and Congress. Best wishes to all conservatives.

DEFUND socialist collectives, foreign and domestic.

27 posted on 10/29/2011 10:34:22 AM PDT by PGalt
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To: AngelesCrestHighway
No way in hell I would buy a new car now and take on that kind of debt with this Turd in charge!

EXACTLY! See my post above this one.

28 posted on 10/29/2011 10:37:20 AM PDT by PGalt
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