Posted on 05/10/2017 8:15:48 AM PDT by Lorianne
Consumer spending – not just retail but also healthcare, housing, tuition, and so on – accounts for 69% of the US economy. Decent economic growth without growth in consumer spending is practically impossible. That’s why everyone is watching consumers. And everyone is praying that they’ll spend.
They’ll have to spend above the rate of inflation for “real” growth (adjusted for inflation) to happen. But that might not be happening over the next 12 months, according to the selfsame consumers.
This isn’t from a wayward blogger spreading some kind of homemade doom-and-gloom gospel, but the New York Fed. It just released its monthly Survey of Consumer Expectations – which covers inflation, the labor market, and household finances, including income and spending expectations. And concerning spending expectations over the next 12 months, it found this embarrassing data point:
Median household spending growth expectations dropped sharply from 3.3% in March to 2.6%, the lowest level observed since the start of our survey in June 2013.The decline was fairly widespread, but largest among lower education (high school or less) and lower income (below $50,000 household income) respondents.
(Excerpt) Read more at wolfstreet.com ...
3 of the last 4 months have had higher than normal or expected job hirings.
How long until consumer spending catches up?
As I have REPEATEDLY posted, the Healthcare Act passed by the Dems is largely responsible for this. It is sucking up the disposable income via healthcare premiums.
Exactly. You are seeing a titanic shift from a debt-driven consumption model to an investment/production model. Consumption will necessarily follow
It's not just that. EVERY month the cost of something that can't be avoided goes up....taxes, utilities, fees. It's obliterating disposable income.
All I know is that construction of nice middle class “affordable” houses is booming locally. Prior to this year, what new residential there was, was very high end or apartments. And, houses are selling. The regional economy has been lagging and sometimes badly since the early 2000’s. Largely manufacturing based.
True that.
However economic sickness is far worse than we’re lied to by US Gov’t / Dept Labor.
Consumers only spend when they have sufficient earnings for purchases.
Savers make 0% interest.
Broad REAL measurement (U3/6/labor participation rate) of US unemployment is actually 22%.
Real CPI inflation rate is: 8%. (Ex: grocery store package sizes shrink while mfgrs continually raise prices)
For more information on how the US gov’t has manipulated these crucial economic numbers read the following and see the charts.
Indeed it has.
Yes I think so do.
The premiums and also the skyrocketing cost of health care itself ... and drugs.
I had prescription I used to get for $10 go to $165.
You get enough of those hits and you’re not going out to eat but maybe once a year.
bfl
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