Only a few days after the U.S. government reported that the economy expanded 2% in the third quarter on consumer spending, where they claimed that, “Household purchases, about 70 percent of the economy, rose at a 2.6 percent pace, the best quarter of the recovery that began in June 2009,” a new conflicting report says otherwise.
A new report in the Associated Press titled September consumer spending weak while incomes dip seems to directly contradict last weeks uplifting news:
Americans slowed their spending in September to the weakest pace in three months and their incomes fell for the first time in 14 months.
The Commerce Department says personal spending rose at an annual rate of 0.2 percent in September. That’s below the 0.5 percent gains recorded in July and August. Incomes actually fell 0.1 percent in September, following a 0.4 percent rise in August that had been pushed higher by the return of extended unemployment benefits.
|Reuters Consumer Confidence Index|