U.S. Consumer Buying the Economic Recovery

Wayne Ellis

[retail streetscape]

U.S. Consumer Buying the Economic Recovery (Bloomberg)

A recent Bloomberg survey of 76 economists found that American households increased spending by the highest amount in the last five months. While holiday discounts and year-end pricing are in effect, and partly responsible for the rise, the data reflected that increases are occurring in product lines not usually found to be a part of seasonal bumps, including: automobiles, furniture, appliances and durable goods. The survey also found that incomes increased 0.2 percent in November, as opposed to dropping 0.1 percent in October. According to Richard Moody, chief economist at Regions Financial Corp. of Birmingham, Ala., “We’re farther along in the restoration of household balance sheets, and that’s turning up in some of the consumer spending numbers.” Proponents of easing the Fed’s stimulus plan are grouping this finding, along with the other subjective data interpretations, to justify the Fed’s reported easing of stimulus in January of next year. We’ll have to see if all of this extra consumer spending, and higher income, has an effect on the markets after the Santa Claus rally runs out of steam.

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Target will try to fix the public relations damage done by the theft of 40 million debit and credit cards by awarding those card holders a 10 percent discount on all merchandise purchased in-store during this holiday season

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE