Troubling News on Consumer Spending

Published October 31, 2014 5:28pm ET



News on the economy had been promising these last few days, especially the GDP increase in the last quarter. Today comes a not-so-good report on consumer spending. As Victoria Stilwell reports at Bloomberg:

Consumer spending in the U.S. unexpectedly dropped in September as incomes (PITLCHNG) rose at the slowest pace of the year, indicating the economy will have difficulty sustaining a pickup in growth into the end of the year. Expenditures decreased 0.2 percent last month, weaker than any economist projected in a Bloomberg survey, after rising 0.5 percent in August, Commerce Department figures showed today in Washington. Incomes increased 0.2 percent, the smallest gain since December. 

The hard-eyed take on this, from Zero Hedge is:

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