Consumer Spending Unexpectedly Falls


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The Wall Street Journal reported that consumer spending has fallen, much to the surprise of the bureaucrats in Washington, DC.

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U.S. consumer spending, a rare pillar of economic strength in recent months, is showing signs of weakening.

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American consumers helped carry the economy through a spring slowdown and appeared to power a summer resurgence in growth. But in recent weeks government data have shown spending was slower over the summer than previously believed, and it has started off the final three months of the year on an even weaker footing.

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Now a range of factors, from high unemployment to the prospect of increased taxes due to the approaching “fiscal cliff,” are threatening to sap consumers’ spending power at a time when other sectors of the economy likely are too weak to pick up the slack. (Read More)

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If consumer spending was faltering before the election and all of the post-election lay offs, imagine what it will be like once the holidays are over and the Obama tax hikes kick in.

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