Consumer Spending Tightens

By
Real Estate Agent with Elite Home Sales Team OC BRE# 02066030

So what is happening out there in the real world when it is reported that consumer spending tightens.  The retailers are expecting a less than normal Christmas season because wages are flat and credit is tight.  This will all lead to a consumer who's consumer spending tightens. 

Since the recovery is week the consumers are in no position to spend there way out of the recession.  The Commerce Department reported that personal incomes were stagnant in September.  While unemployment is still rising.

Consumer spending accounts for 70 percent of the total economic activity has dropped 0.5 percent the first decline in 5 months.  The bright spot in the economy is that gross domestic product grew 3.5 percent from July to September.

Analysts are saying that the consumer are showing there fear of the economy by their spending habits and and they tightens the grip on their money.

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Rainer
37,908
Kirk Williams
Private Venture Capital - Everett, WA

This will be a very slow recovery (and I believe it will be) if we are to rely upon the consumer to bring us out of this funk.

Great post.

Nov 01, 2009 04:49 AM #1
Rainmaker
155,388
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

I think it will be a real slow recovery no matter who is reponsible for it.

Nov 01, 2009 04:50 AM #2
Rainmaker
1,004,473
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Mark:  I think, at least from what I have seen... the consumer... which is everyone, actually THINKS about letting go of the money before they make their purchases.  I have seen people even take groceries off the shelf, put the item in their cart... then stop, think for a minute, and then take that item out of the cart and put it back on the shelf.  People are just so much more serious about letting go what little money they have.

Nov 01, 2009 04:54 AM #3
Rainmaker
920,718
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Chesterfield, MO
SelectAnn.com

Mark,

The forecast for Halloween was bleak but then people got out and spent lots of money...

Ann

Nov 01, 2009 12:30 PM #4
Rainmaker
850,184
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

I agree that is will be a long and drug out process to get us out of the mess.

Nov 02, 2009 03:54 AM #5
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Rainmaker
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