U.S. Consumer Spending Stalled In June

- U.S. Consumer Spending Stalled In June



Aug 2, 2011

U.S. consumer spending stalled in June as a drop in hiring caused households to cut back, according to the Commerce Department in a report on Tuesday.

In June purchases June rose 0.1% after not much change, while personal incomes likely increased 0.2% in June, the smallest gain in seven months.

Because of the lack of jobs in combination with wage gains have failed to keep pace with inflation, it raises the risk of further cut backs on consumer spending that accounts for 70% of the world's largest economy.

The Gross domestic product increased to a 1.3% annually rate from April in the course of June after a 0.4% gain in the previous quarter that was less than what was earlier expected. Household spending increased 0.1%, the weakest performance since the Q2 of 2009, the end of the last recession.

Federal Reserve Chairman Ben S. Bernanke said in semi-annual testimony to Congress on July 13, "Wages are very stagnant and that's affecting consumer spending and consumer confidence. There is also ongoing uncertainty about the durability of the recovery."

Oil & Gas Post

Promote Your Page Too

CPI Rises 0.2% in May, Gas Drops for First Time in 11 Months

- CPI Rises 0.2% in May, Gas Drops for First Time in 11 Months



Jun 15, 2011

The Consumer Price Index (CPI) increased a seasonally adjusted 0.2% in May, the Bureau of Labor Statistics reported today, showing prices moderating somewhat from the 0.4% increase in April.

Economists had expected a 0.1% increase. The index has now increased 3.6% over the last twelve months.

The core CPI, which excludes food and fuel actually increased at a faster rate in the month, rising 0.3%. Economists had been expecting a 0.2% rise.

That's the largest increase in the core rate since July of 2008. Apparel, shelter, new vehicles, and recreation all contributed to the increase, more than offsetting declines in the prices for airline fares, tobacco, and personal care.

The food index rose as well, with the food at home index gaining 0.5% for the second month in a row.

The energy index declined 1.0%, with gasoline falling 2% alone. It's the first decline in the gas index since June of 2010.

Oil & Gas Post

Promote Your Page Too

The Conference Board's Consumer Confidence Index Declines to 60.8 in May

- The Conference Board's Consumer Confidence Index Declines to 60.8 in May



May 31, 2011

The Conference Board's consumer confidence index decreased to 60.8 in May, down from 66.0 in April. Economists had expected an increase to 67.5 for May.

The present situation index declined to 39.3 from 40.2, and the index for future expectations declined to 75.2 from 83.2 last month.

The cutoff date for these preliminary results for the month was May 18, 2011.

Lynn Franco, Director of The Conference Board Consumer Research Center commented: "A more pessimistic outlook is the primary reason for this month's decline in consumer confidence. Consumers are considerably more apprehensive about future business and labor market conditions as well as their income prospects. Inflation concerns, which had eased last month, have picked up once again. On the other hand, consumers' assessment of current conditions declined only modestly, suggesting no significant pickup or deterioration in the pace of growth."

The proportion of consumers expected business conditions to improve over the next six months declined to 17% form 19.2%, with those expected conditions to worsen increased to 15.5% from April's 14.0%.

Oil & Gas Post

Promote Your Page Too

March Consumer Spending Grows 0.6%, Personal Income Up 0.5%

March Consumer Spending Grows 0.6%, Personal Income Up 0.5%



Apr 29, 2011

March consumer spending was better than many had feared, showing a 0.6% rise in current dollar terms according to the Commerce Department, slightly higher than the 0.5% increase economists' had expected.

When adjusted for inflation, spending increased 0.2% in the month after rising 0.5% in January.

Consumer spending in both January and February was revised higher, with February spending getting bumped to 0.9% from 0.7%, and January spending to 0.5% from an initially estimated 0.3% increase.

It was feared higher energy prices could more severely slow consumers' spending. The personal consumption index (PCE) rose 0.4% in March after an increase of the same amount in February. Year-over-year the PCE is up 1.8%.

Core PCE, which excludes food and fuel, was up only 0.1% in March, after rising 0.2% in February, and is up 0.9% year-over-year.

Personal income for the month rose 0.5% in March, beating the expectation for a 0.3% gain.

Concerns about jobs and inflation eased in April

Concerns about jobs and inflation eased in April



Apr 26, 2011

The Associated Press is reporting that a monthly survey by The Conference Board says concerns about jobs and inflation eased in April. According to the report, the Consumer Confidence index rose to 65.4 from a revised 63.8 in March. Economists expected a smaller rise to 64.8. This comes after an unexpected drop in March stemming from worries about rising gas prices and other household items. The index is still far from the reading of 90 that indicates a healthy economy. The AP says it hasn't approached that level since the recession began in December 2007.

Consumer Sentiment Rises To 69.6 In Preliminary April Report

Consumer Sentiment Rises To 69.6 In Preliminary April Report



Apr 15, 2011

The Thomson Reuters/University of Michigan survey of American consumer sentiment hit 69.6 in its preliminary reading for April, up from 67.5 in March.

Barclays Capital analysts said in a research note in advance of the data's release, "The equities market has recovered somewhat since its recent low in mid-March and we think that this should support consumer expectations. However, energy prices remain elevated and have continued to rise further over the recent period."

Economists had been expecting a reading of 69. The rise comes after a big drop in March from February, as consumers showed concern about Middle Eastern unrest, the rising price of oil, and the devastating Japanese natural disaster.

The current conditions index was 82.7, up from 82.5 the month prior, while the future expectations gauge came in at 61.2, up from 57.9.

CPI Increases 0.5% In March

CPI Increases 0.5% In March



Apr 15, 2011

The consumer-price index increased 0.5% in March, led by increases in food and fuel costs, according to the Labor Department. The report was in-line with what economists had expected.

Core CPI, which excludes volatile food and fuel prices, rose 0.1% in the month, less than the 0.2% economists had forecast.

The index has now increased 2.7% in the past 12 months, the biggest year-over-year increase since December of 2009. Core CPI has risen 1.2% in that time frame.

As recently as October, the year-over-year gain was just 0.6%, the smallest rate of price increase since records began in 1958.

Energy costs increased 3.5% from a month earlier, the most since December, while gasoline prices jumped 5.6%.

Rising prices have caused economists to lower their forecasts for inflation adjusted consumer spending, which increased at a 2% annual rate in Q1, compared to a 4% gain in the fourth quarter of 2010.