"Squeezed by gas prices, consumers spend less; Incomes stall; inflation inches up" by Christopher S. Rugaber, Associated Press / June 28, 2011
WASHINGTON — For the first time in a year, Americans have stopped spending more.
I pretty much have.
Other than the "luxury" of the pos paper and a morning (or sometimes afternoon now) coffee it's only the necessities to keep this less-than-middling life alive.
May I add that it has been an honor to serve YOU, dear reader?
Consumer spending failed to budge from April to May, evidence that high gas prices and unemployment are squeezing household budgets. When adjusted for inflation, spending actually dropped 0.1 percent last month, the Commerce Department reported yesterday.
Yeah, the greedy oil companies really brought the thing to a standstill. Had to get one la$t $wig before this economy went back into the tank again (
Related: The economic recovery turns 2: Feel better yet?
Only the wealthy and corporate profits have done well during this "recovery?"
April’s spending figures were revised to show a similar decline when adjusting for inflation. It marked the first two-month decline in inflation-adjusted spending since April 2009.
That means the GOVERNMENT LIED the FIRST TIME AROUND (like they always do, and I'm sure this is still yet another lie. Things are almost positively worse)
Incomes rose 0.3 percent for the second straight month.
Yeah, the gains by the rich hauled the numbers up. I didn't get a raise last month.
But adjusted for inflation, after-tax incomes increased only 0.1 percent in May, after falling by the same amount in the previous month....
Wall Street took the dismal consumer spending report in stride. Investors seemed more focused on encouraging news on Europe’s debt crisis — French banks agreed to let Greece repay some of its debt more slowly....
Related:
"While the U.S. economy staggers through one of its slowest recoveries since the Great Depression, American companies are poised to report strong earnings for the second quarter—exposing a dichotomy between corporate performance and the overall health of the economy."
I guess they would take it in stride, wouldn't they?
Consumer spending is important because it accounts for 70 percent of economic activity. The spike in gas prices has forced many to cut back on discretionary purchases, which help boost growth.
That's part of it, but not all.
In addition, fewer jobs and high unemployment have left workers with little leverage to ask for raises.
Now that LAST PART has been PART of the PLAN in AmeriKa for OVER ONE-HUNDRED YEARS!
Economists note that the slowdown in spending was partly the result of temporary factors....
Sigh. No comment.
Cars because of a parts shortage stemming from the crisis in Japan.
Yeah, how come I NEVER SEE a WORD ABOUT THAT ANYMORE?
US factories are expected to begin producing more cars once Japan’s factories resume more normal operations.
Are they ever really going to be able to do that? The place is a radiation pit even if it stopped being a danger today. As it is, they say it will TAKE MONTHS to SHUT the PLACE DOWN! Right now they are STILL just DUMPING WATER on it!
But never mind that. It's all about the gas.
Gas prices peaked in early May at a national average of nearly $4 per gallon. Since then, they have dropped to $3.57 per gallon, according to AAA.
Which is odd because it is still at $3.67 'round h're.
Cheaper gas will likely allow consumers to spend more freely this summer and fall.
Except WE HAVE NO MONEY!
The consumer spending report also showed that prices are increasing across many goods and services.
Yeah, every time Bernanke turns on that printing press to buy back fraudulent MBS prices go up.
Excluding the volatile food and energy categories, inflation rose 0.3 percent in May, the most since October 2009.
Which means inflation is always higher than what the government claims.
--more--"
Better gas up; this is taking longer than I wanted.
"Gas prices neared $4 a gallon in late April and early May, but have since fallen to a national average of $3.57 per gallon. Still, the government said Monday that Americans spent at the weakest pace in 20 months in May, a sign gas prices may be hurting the economic recovery....
When the AmeriKan media repeats something as the cause of something else that's when I know we are not being told the whole story -- not that they ever would. They give it out in sentences and paragraphs, and you really need to read and dig for them. Most of the rest is pos propaganda or worse.
--more--"
I guess that's why my confidence in them is down, huh?
"Consumers’ confidence down in June on job worries" June 28, 2011|Anne D'Innocenzio, AP Retail Writer
If you’re a U.S. consumer, why would you be confident?
Exactly.
**********
“Americans still feel like they’re in a recession,’’ said C. Britt Beemer, chairman of America’s Research Group....
Because we ARE in the GRAND DEPRESSION (as historians will call it when the world has been righted).
Still, economists had expected the confidence index to edge up because consumers are paying less at the pump.
And the propagandists, 'er, experts are WRONG AGAIN!
Consumers had been hurt by rising gas prices that neared $4 per gallon in late April and early May, leading many to cut back on spending for everything from televisions to clothes. But since the Memorial Day weekend, gas prices have fallen to a national average of $3.57 per gallon.
Yeah, lucky you, America.
Lynn Franco, director of The Conference Board Consumer Research Center, said rising gas prices have much more of an impact on confidence as they go up than when they fall.
I agree. Psychologically, it is one of the few important topics Americans are allowed to make small talk about.
How 'bout those gas prices, huh? Let's face it, readers, you all know someone who has said that.
Besides, the fact that there is less pain at the pump comes as there is a steady drumbeat of other economic news that ranges from mildly encouraging to downright bad.
Mostly downright bad unless you are a corporation or wealthy.
Related:
You know the drill, America....
1. Pull up to pump
2. Get out of car
3. Drop pants
4. Insert gas pump into ass
5. Pump gasNow that didn't hurt, did it? Not at $3.57/gallon!
Felt good, didn't it? Wrong way up a one-way street, but....
Meanwhile, shoppers are getting paltry wage increases at the same time that they are paying more for food and clothes....
That is if they are getting any increase at all, if not facing a cut.
--more--"
But BIDNESS is GOOOOOD!
"Business expansion exceeds forecasts; Signs point to possible uptick" July 01, 2011|By Shobhana Chandra, Bloomberg News
WASHINGTON - More Americans than forecast filed first-time applications for unemployment benefits....
Well, not for them (experts wrong again?).
The claims figures may be influenced by earlier-than-usual auto plant shutdowns. Carmakers that have had difficulty getting parts from Japan may be using the period as an opportunity to retool for new models.
Look at the corporate media issue excuses!
As facilities close, the increase in the number of workers filing for unemployment claims may be distorting the government's figures, economists such as Joe LaVorgna at Deutsche Bank Securities LLC said.
As if they WERE NOT DISTORTED in the FIRST PLACE!
I do have to thank the guy for MAKING ME LAUGH TODAY!
Yesterday's figure is at odds with regional factory reports from Philadelphia and New York that showed Japan's earthquake-related supply shortages kept working their way through the economy this month....
That is why GLOBALIZATION STINKS!
--more--"
What do you say we GO GET A NEW CAR?
"Car dealers spruce up in hopes of sales gains; Upgrades draw mixed reviews" July 01, 2011|By Tom Krisher, Associated Press
DETROIT - Detroit automakers are finally stable after their brush with death, and most dealers can afford to spend a little money to spruce up the showroom. So they are adding leather chairs, rich oak walls, theatrical lighting - even hair salons.
The improvements can cost from $200,000 to $15 million. But dealers say it is worth it because people expect a more memorable, luxurious experience these days as they make one of the biggest purchases of their lives.
I just want to get a decent car that is going to work and last.
"If we don't meet that expectation, we will not compete," says Richard Bazzy, who plans to spend more than $1 million each to renovate his two Ford dealerships in the Pittsburgh suburbs, including brushed-aluminum exteriors and mahogany and maple furniture.
Whether it helps sales is up for debate in the industry. Nicer surroundings may draw people in, but they also raise costs and let dealers with shabbier buildings sell for less.
Bazzy says he will pay for the upgrades without help from Ford, but sometimes automakers will kick in. Some dealers have spent millions on their own, while others were forced to by automakers.
General Motors, Ford, and Chrysler have been trying for years to get dealers to spiff up, but they are pushing harder now. Honda and Toyota have similar programs. There are specifications for uniform signs, paint colors, and furniture as automakers try to make dealers look alike and create a unified image for their brands.
Honestly, I am SICK of the P.R. PITCH and IMAGERY!
Dealerships that sell luxury cars have been one-upping each other for years, but the contest is moving into everyday brands. Some dealers say it is getting out of hand and the customer will wind up absorbing the additional cost....
STICKER SHOCK!
--more--"
Saw some people while we were in there:
"US auto sales rose in June thanks to drop in gas prices" July 02, 2011|By Dee-Ann Durbin and Tom Krisher, Associated Press
DETROIT - Gas prices hit a sweet spot for automakers last month. They fell far enough to spur pickup truck sales, yet remained so high that small cars sold well, sometimes just hours after reaching dealers' lots.
That made June a good month for General Motors and Ford, which have traditionally relied on truck sales and now have strong lineups of smaller, fuel-efficient models as well.
Also see: GM posts $4.7b profit, its first since ’04
Toyota and Honda couldn't take advantage, however. Their sales plummeted more than 20 percent each as they ran short of cars because of the ongoing problems from the March earthquake in Japan.
If you do buy one you might want to check it for radiation.
Those declines - and the continuing weakness in the US economy - meant sales grew more slowly in June than they might have....
--more--"
I'm starting to fall asleep at the wheel; double-talk will do that to you.
"Factories got busier in June after slump in spring" July 02, 2011|By Tali Arbel, Associated Press
NEW YORK - Factory activity picked up in June after a sluggish May, helped by lower gas prices and some easing of supply disruptions....
Pffft!
The stronger reading was an optimistic sign that the economy could be strengthening after a spring slump....
I give up on the BG business section.
"This is additional evidence that the recent slowdown in economic activity was temporary," said Steven Wood, chief economist for Insight Economists....
Construction spending declined in May to a seasonally adjusted pace of roughly $758 billion, the Commerce Department said yesterday. Budget cuts at the state and local level led to a sharp drop in government spending. And home builders cut spending again, chiefly on apartment projects.
Overall, construction spending was barely above an 11-year low hit in February. Analysts say it could be another four years before construction returns to healthier levels.
The economy grew only 1.9 percent in the January-to-March period, the government said last week.
Most economists predict growth to be similarly weak in the April-to-June period.
But gas prices are falling....
Cheaper gas should allow consumers to eat out more often and spend more on discretionary purchases, such as furniture and appliances. Consumer spending makes up 70 percent of economic activity.
I'm no longer hungry for the agenda.
--more--"
I've either stalled or run out of gas, readers.
So what do you want to do now? Have I told you I love you?
