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BUSINESS: Consumer Spending Plummets, New Numbers Threaten Severe Market Decline

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posted on Aug, 3 2004 @ 09:17 AM
A government report, released today says that in June, many consumers cut back on the purchase of major items due to the lack of income growth. Personal spending dropped .9 percent after adjustments for inflation. Later this week numbers will be released for July and will provide a clearer view of exactly where the economy is going.
WASHINGTON (Reuters) - U.S. consumer spending took a much deeper dive than expected in June as shoppers cut back on purchases of expensive items like autos amid slowing income growth, a government report showed on Tuesday.

Please visit the link provided for the complete story.

If the July numbers that come out also reflect a severe decline then we could very well be headed quickly toward a stock market depression. Most people agree that one of the few things that keep the US economy going is consumer spending. Because people are willing to spend their money everything works. If consumer confidence is suddenly shaken then stocks could plummet overnight.

Let's hope the July numbers are more optimistic.

This story will be updated as the new numbers are released.

Oil hitting $44 USD a barrel isn't helping things either: see

edit: add oil data

[edit on 8/3/2004 by lockheed]

[edit on 3-8-2004 by Nerdling]

[edit on 8/3/2004 by lockheed]

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