Consumer spending falls off a cliff in December, posts biggest drop since 2009

[UpInArms]

Source: Marketwatch

The numbers: Amid the biggest stock-market plunge in decades, Americans reduced spending in December by the largest amount since the economy exited recession in 2009.

Consumer spending sank 0.5% in December, the government said Friday. The decline was a touch higher than the MarketWatch forecast.

Consumers spent less on new cars and trucks, likely because of discounts and other specials. And they also spent less on electricity and gas. So the decline in spending wasn’t entirely bad.

The drop-off in spending was not a big surprise giving a sharp decline in retail sales in December, but it overstates the weakness in the economy at year end. Other reports such as fourth-quarter GDP suggest U.S. growth didn’t slow quite as dramatically as the spending figures suggest.

Read more: https://www.marketwatch.com/story/consumer-spending-falls-off-a-cliff-in-december-posts-biggest-drop-since-2009-2019-03-01?mod=mw_latestnews

[Dennis Donovan]

1. He's been systematically destroying everything associated with Obama

...including the robust Obama economy.

[volstork]

2. So much winning.

I'm effing tired of all the winning...

[Farmer-Rick]

3. I did notice there was plenty of parking at Wal Mart

During December, you usually can't find parking unless you drive around for half an hour. But this last December no problem. Weird. Something is brewing.

[KY_EnviroGuy]

11. Crazy thought - this could get interesting.

No doubt Walmart, Target and many others are feeling the pressure from on-line retailers like Amazon. Ever since the late 60s, I've held resentment toward Walmart and K-Mart for forcing thousands of mom-and-pop stores to close, particularly in small-town America.

Wouldn't it be some bizarre karma if Walmarts around the country started closing due to Amazon's monopoly?......

[RandySF]

4. I see signs of a slowdown everywhere

[Yavin4]

5. I do seem to recall a fairly subdued Christmas

Normally, it's all in your face, but last year, not so much. Felt like a regular old holiday. No big whoop.

[Sherman A1]

6. Oh My....

This is not a good thing.

[dalton99a]

7. More to come when they feel the GOP tax scam this filing season

[crazycatlady]

8. I've definitely noticed it with my (online) store traffic

Also I am participating as well. More for decluttering reasons than economic ones. I make a no buy list every year. This year I am not allowed to buy clothes or shoes.

[Hugin]

9. Not surprising considering a whole lot of people weren't getting paid...

Due to the Distraction Shutdown.

[forklift]

10. Sad story

This will hit the lowest wage earners and small businesses the most.

Trump is causing a lot of economic pain.

[LittleGirl]

12. When the econonmy is based on

consumer spending, eventually, everyone has everything they need.

And what about that new show about "sparking joy with what you already have."
I bet spending is up at Goodwill.
hmmmm

[kimbutgar]

13. Wait until shopping slows down even more because the economy will not get the tax refund

Purchasing bump. I usually get about $1500 back this year my refund is $88. People look forward to that bigger refund to buy big ticket items or take a vacation. This year the money is just not there. The economy is slowing down and we all know who’s fault it is and what party passed a big tax cut for millionaires.

You can bet the gangsters of politics will go on fox and blame the Democratic Party. But facts are facts. The brainwashed cult members might believe that lie but the majority know the truth.

[Aussie105]

15. So much

for the 'flow on effect' of the tax cuts that was supposed to benefit everyone NOT a mega-millionaire.
Reality sucks, sometimes.

[sinkingfeeling]

14. But, Donnie says we have the best economy in history.

[Aussie105]

16. News Flash!

Donnie tells lies sometimes.

He doesn't care, it's the sound byte he likes. Facts fade, sound bytes linger forever. And facts are less worthy than sound bytes, don't you know?

Actually, things were subdued here in Australia over Christmas too. We didn't bother spending big. Didn't spend at all, really. Skipped the turkey, bought a small leg of ham rather than the usual full leg.
(Still got sick of eating ham sandwiches over the weeks that followed though.)

[KY_EnviroGuy]

17. You're right and it's a feature of the Bully Pulpit, for example.

The first statement made is the one that sticks in people's minds and the weird part is that psychologist say people tend to take the first-out stuff as the truth. After that, it takes a lot of effort to change that mindset. Characters like Trump know that.

Republicans in particular and TV advertisers know exactly how to influence the public mind.......