Consumers are spending less

 

 

 

Consumer spending in the US revived last month, rising 0.1% in February vs. January, the Bureau of Economic Analysis reports.

Spending is slowing down. There is a profound disconnect between surveys measuring consumer confidence and spending.

Consumer confidence is ebullient. Yet, spending is slowing down in a worrisome way (see above chart, click on the chart to enlarge it). What is going on in the consumers' minds?

The previous posts suggest the economy is more likely to be downshifting than strengthening (as reported by various domestic and international surveys).

The continued weakness in commodities seems to confirm  we are facing weaker economic conditions.

It is very unlikely interest rates will rise under these conditions.

PS - Just received. Timer Digest has ranked George Dagnino as No. 1 bond timer in the past 12 months. Thank you Timer Digest.

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George Dagnino, PhD
Editor

The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull or Bear Markets
 

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