Consumer spending rises as factory output surges

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) - Retail sales rose in April for the seventh straight month, offering hope that consumer spending will keep supporting the economy in the months ahead.

The Commerce Department said Friday that retail sales rose 0.4 percent last month, better than the 0.2 percent increase economists had expected. The gain was less than the the 2.1 percent growth in March. But that surge was boosted by an early Easter holiday and auto incentives.

Excluding autos, retail sales climbed 0.4 percent in April, matching expectations.

Consumer spending is closely watched because it accounts for 70 percent of economic activity. Consumer spending rose in the first three months of this year at the fastest pace in three years and economists are hoping that better news on employment will bolster spending in coming months.

Read more: http://apnews.excite.com/article/20100514/D9FML0J01.html

[babylonsister]

1. Sounds like a win/win. nt

[UndertheOcean]

2. So if we don't consume and pollute more everything goes down the tubes ? n/t

[SocialistLez]

3. Pretty much. I'd like to see us transition to a steady-state economy.

[xxqqqzme]

4. "...A second report Friday from the Federal Reserve

showed that industrial production rose 0.8 percent in April, better than the 0.6 percent gain economists had expected. The increase provided further evidence that manufacturing is playing a leading role in supporting the economic recovery..."

rose in which country? The article/report excluded autos. So other than weapons of destruction, what are we making? All that wonderful consumer spending sure as hell isn't for stuff 'Made in USA'.

I'll be buying my campaign cards, donor envelopes and yard signs soon. They will all be union produced but I do not know where the paper was made or the ink. A friend gave me a cardboard yard sign for his campaign last night. The out gassing from the sign was all I could smell in the house when I got up this morning.

[bossy22]

5. actually

The U.S. produces many consumer items such as washing machines, refridgerators, blenders, ovens...etc

Also the U.S. produces alot of capital equipment such as heavy manufacturing machinary, large earth movers, mining equipment, locomotives. A funny thing is that all that cheap chinese stuff is made using U.S. made machinary

To end...don't forget that we are still by far the largest manufacturer in the world- accounting for 25% of WORLDS manufacturing. Just because we don't manufacture stuff bought at your local dollar store doesnt mean we dont have an industrial capacity.

one last thing...whats so bad with us producing weapons? The defense industry in this country employs hundres of thousands of people. There will always be demand for those things and there will always be suppliers of it. I'd rather us produce them and employ americans rather than all that business go to chinese and russian companies. Cutting off your arm to make a political statement isn't always a good idea

[SocialistLez]

7. Wouldn't it be great if those war weapons were not necessary? NT

[bossy22]

9. absolutely

the sad reality is that there is no end in sight for weapons of war

[Kingofalldems]

6. Freepers and teabaggers not liking this one bit

[ipaint]

8. Too bad that 70% chunk of the economy, consumers, aren't spending their money on

products manufactured in the US. If that was the case we may actually have a sustainable recovery.

As is, the good paying living wage jobs don't exist in the real numbers needed to sustain a middle class. 1/3 of this country's households are at or below 200% of the poverty level for a family of 4, which of course is set artificially low.

There are hundreds of thousand of people every month that are exhausting all unemployment benefits. Millions by the time elections roll around. Older workers, 50 and up, are truly screwed and are being swept under the rug permanently.

I truly hope folks are opening their wallets a bit, it's the only thing that may save my husband and I from the street but a sustained recovery with living wage jobs for the vast majority of folks who want to build a life and family, that's gone for good.

[prolesunited]

10. When will this translate to jobs?

It seems like things are headed in the right direction, but when will see millions go back to work? If you are long-term unemployed, it seems like you are thoroughly screwed.

[TomCADem]

11. It Has. The Loss Of Jobs Has Been Reversed, And Then Some

Now, the unemployment rate will continue to remain high as folks continue to look for work AND as folks who are employed are told to work harder to avoid hiring new people. "Worker smarter, not harder," is a familiar refrain. However, at a certain point, you simply cannot handle the amount of work. Some folks may be playing solitaire at work, because things are still slow, but most people are I know who are employed are getting killed as employers resist hiring new people.

<>