Consumers boosted spending in Dec.

[kalian]

http://www.msnbc.msn.com/id/4134882/

WASHINGTON - Consumers kept the nation’s cash registers busy in December, boosting their spending by a healthy 0.4 percent in a fresh sign that the economy’s recovery has legs.

...more...

They've GOT to be kidding... 0.4% is a "fresh sign" that the economic
"recovery" has "legs"... :eyes:

[DODI]

1. Why would people be spending in December?

I thought is was one of the worst retail seasons ever?

[lastknowngood]

2. Yea and income was up .2% which is a net loss of

.2% in networth. They spent more than they earned again.

[Frodo]

3. That number isn't annualized.

Why some numbers are and other aren't can be confusing, but a one month figure of .4% following November's .5% is pretty "good".

The problem is the gap between spending and income. Nothing wrong with spending being higher than income (especially with spending up so much on "durables" and unchanged on "nondurables"), BUT having that gap month ofter month for about a year and a half now gets to be a strain on things. It happened for about a year in the 90's without problems, but it isn't sustainable.