US Consumers Curb Spending in Nov

[wicket]

http://story.news.yahoo.com/news?tmpl=story&ncid=749&e=1&u=/nm/20041223/bs_nm/economy_dc

Sales of new U.S. homes tumbled at the sharpest rate in more than a decade in November, the government said on Thursday, but a separate report showed consumers' mood still buoyant as a close to 2004 neared.

A slew of reports, issued ahead of a Friday holiday that will see government offices and U.S. financial markets closed for Christmas, painted a somewhat muddled picture of steady but unspectacular expansion.

-snip-

Other reports on Thursday indicated consumers kept a grip on their wallets in November, spending less heartily and saving slightly more. They also showed U.S. factories enjoyed a surprisingly strong business pickup last month.

Consumer spending edged up a slim 0.2 percent in November -- a fraction of October's 0.8 percent jump -- as purchases of new cars dropped sharply. The figure is closely monitored since consumers fuel two-thirds of national economic activity.

[Tempest]

1. Real wages down .4% in November

Real wages down and inflation up means only one thing.

People are racking up credit card purchases at a high level.

I expect 2005 to show a much higher level of personal bankruptcies. And 2004 was a record for them.

[wicket]

3. 2005 will be brutal

:(

[RaleighNCDUer]

2. But there's going to be a great surge in last minute Christmas

spending. I heard it on CNN, so it must be true.

[KansDem]

4. Didn't they try that great "last minute" surge...

to explain the flaky election numbers as compared to the exit polls?

I think I heard this before...

[Starlight]

8. I only bought 1 small gift so far so I'll be part of that surge....

by buying 1 more tonight. I'm thinking I'll pick up come paints & drawing paper at the drugstore for the single child on my list. Everyone else received donations to charity. :)

[RaleighNCDUer]

9. Donate to charity. I like it! IMHO, that truly suits the 'reason for the

season.'

Happy holidays!

[cliss]

5. This is good news.

I'm glad to hear that consumers are cutting back on their spending. There have been many threads here, urging everyone to cut back. In particular, stop the Xmas machinery that leaves so many people broke afte the holidays. That was the biggest one.

I consider the DU to be a bellwether for trends in society. What we do here, should hopefully move into the mainstream at some point.

What we do on an individual basis = becomes big trends.

[JaneDoughnut]

6. You're right

And economic activism has helped put political power back in our hands - power I was certain I would never have after Nove. 3.

[lastliberalintexas]

12. It would be good news if it was voluntary

If people were consciously making the decision to curb consumerism and that was the reason for the downturn, then it would be great news. But all indications are that this is due to high unemployment and/or insecurity about employment, and people just don't have the money to spend even if they have the desire.

[Career Prole]

7. "...consumers' mood still buoyant ..."

Wait until they find out that soaked plastic doesn't float.
Cheney spoke of Ebay entrepreneurs. What bullshit.
Ebay has become a cyber-pawn shop where "buoyant consumers" try to unload their bling on other saps in a last-ditch effort to pay the mortgage.

[truthseeker1]

15. Yeah, we're all exchanging our junk with each other on eBay

"one person's junk is another person's treasure"
not a bad thing - it keeps consumers out of retail and from spending money on new products - and makes use of "stuff" that might otherwise continue to sit in your house or garage not getting any use.

I bought xmas dishes, a punch bowl, a chafing dish, a refurbed CD clock radio, and several CDs in the last month on eBay. And I intend to start selling off my CD collection next week during the holiday break. Don't need them anymore now with MP3 technology. They're just sitting there taking up space. I love eBay - it serves a great purpose. But I agree, Cheney's blowing smoke up our skirts (or trying to anyway) about eBay "entrepreneurs" - riiiiiight!

[Career Prole]

16. I know personally know four who are hocking, not hawking, on Ebay.

Selling what they can to pay the bills.
I'm certain there are many more than that. I've got nothing against Ebay for doing it, mind you, I'm glad they're there for it.
As a safety net it sucks, though. :(

[demokatgurrl]

10. this may be an odd take on this situation-

First, in the interest of full disclosure, I have to disclose that I do not celebrate Christmas, so that may account by my lack of appreciation of some of the - er- "rituals". Specifically, the mad, frenzied, forced, obligatory shopping rituals.

Anyway I have been puzzling for many years over the fact that the entire retail sector of the U.S. economy seems to revolve around Christmas. If it weren't for Christmas shopping, would the economy tank? You might think so to read the newspapers and watch as everyone waits for the reports of whether people "spent more this year than last year". However, as far as I can tell, ours is the only country that operates that way. I know there are many other countries where Christmas is observed, but I don't see the GRANDIOSE spending, and can only conclude that people spend money all year on things they truly need or want, rather than huge quantities of cheap unwanted stuff to meet some sort of obligations. Maybe we are moving that way?

Ok, not likely.

[wicket]

11. I believe US retailers do 40% of their business at Christmas

I could be a bit off, but I believe that is the number, someone correct me if I'm wrong. Christmas is huge for retailers.

[billyoc]

14. The day after Thanksgiving is called "Black Friday"

for a reason. That's the day when retail stores start moving out of the red ink and into the black, if they move out at all. Not much movement this year, I wouldn't think :(

[PROGRESSIVE1]

13. No No No!

They will "give" you the "Real" story. The economy is "great" and Bush is the "glorius" leader. So stop this silly non-sense about a bad economy. It's all left wing B.S!

-end sarcasm-

:silly:

:eyes:

THE ECONOMY SUCKS!!!!

[Anakin Skywalker]

17. Good News!

I'm glad the Bush Economy is tanking. But Red Staters will still believe as gospel Bush 3:16. Those morons!