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Purveyor

(29,876 posts) Thu Mar 12, 2015, 01:57 PM Mar 2015

American Mystery Story: Consumers Aren't Spending Even In a Booming Job Market

by Craig TorresMichelle Jamrisko
1:29 PM EDT March 12, 2015

It's an American mystery story: More people have jobs and extra pocket money from lower gas prices, but they aren't buying as much as economists expected.

The government's count of how much people shelled out at retailers fell in February for a third consecutive month. Payrolls are up 863,000 over the same period.

The chart below shows retail sales and payrolls generally move in the same direction, until now. The divergence could portend lower levels of economic growth if Americans' usually reliable penchant to spend is less than what it once was.

Charts year-over-year growth in U.S. retail and food services sales (red) against year-over-year change in non-farm payrolls (blue).
Sources: Bureau of Economic Analysis, Bureau of Labor Statistics

"The expenditures that add up to gross domestic product are coming in a lot softer than employment," said Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC. "Why would retailers be hiring if sales are falling? Why would they be boosting hours if sales are falling and why would they be paying more?"

Also, take a look at the household saving rate. It's gone up as gas prices fell:

more...

http://www.bloomberg.com/news/articles/2015-03-12/american-mystery-story-consumers-aren-t-spending-even-in-a-booming-job-market

12 replies

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Highlight:

American Mystery Story: Consumers Aren't Spending Even In a Booming Job Market (Original Post) Purveyor Mar 2015 OP

And when we spend, we're hammered with stories about how we're not saving. Brickbat Mar 2015 #1

You nailed it !!!!!!!!!! virgogal Mar 2015 #3

Just what I was going to say! We're castigated for not saving, and then when we save, Nay Mar 2015 #12

I suspect it's because most of those new jobs they've added aren't paying shit. Ron Obvious Mar 2015 #2

SO it is okay if a billionaire(s) hoards half the wealth of a society, but when the working class Rex Mar 2015 #4

Which goes to show that there's only so much Ilsa Mar 2015 #5

This is definitely a "let them eat cake" article. Initech Mar 2015 #11

Some of you might be too young to remember FiveGoodMen Mar 2015 #6

Maybe should look back to Depression Recovery? One_Life_To_Give Mar 2015 #7

Most Households are just plain and simplly Wellstone ruled Mar 2015 #8

only jobs "booming" are bottom-dollar subsistence jobs Man from Pickens Mar 2015 #9

No mention about the ridiculous interest rates credit card companies are charging? Initech Mar 2015 #10

Brickbat

(19,339 posts)

1. And when we spend, we're hammered with stories about how we're not saving.

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 01:58 PM

Mar 2015

virgogal

(10,178 posts)

3. You nailed it !!!!!!!!!!

Reply to Brickbat (Reply #1)

Thu Mar 12, 2015, 02:02 PM

Mar 2015

Nay

(12,051 posts)

12. Just what I was going to say! We're castigated for not saving, and then when we save,

Reply to Brickbat (Reply #1)

Thu Mar 12, 2015, 08:54 PM

Mar 2015

we get screamed at for not spending. Talk about insanity.

Ron Obvious

(6,261 posts)

2. I suspect it's because most of those new jobs they've added aren't paying shit.

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 01:58 PM

Mar 2015

But that's just speculation on my part.

Rex

(65,616 posts)

4. SO it is okay if a billionaire(s) hoards half the wealth of a society, but when the working class

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 02:03 PM

Mar 2015

does it (puts away a few thousand dollars in savings)...it hurts the 'economy'. Fuck. Off. Bloomberg.

Ilsa

(61,695 posts)

5. Which goes to show that there's only so much

Reply to Rex (Reply #4)

Thu Mar 12, 2015, 02:17 PM

Mar 2015

crap that billionaires can spend money on. They don't need the excess. It should be taxed hard and incentives given to paying higher wages.

Initech

(100,084 posts)

11. This is definitely a "let them eat cake" article.

Reply to Rex (Reply #4)

Thu Mar 12, 2015, 03:13 PM

Mar 2015

Spend, you fucking peasants! Spend!

Oh and the Fortune 400 hoard so much wealth that it's creating an unsustainable global economy.

FiveGoodMen

(20,018 posts)

6. Some of you might be too young to remember

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 02:20 PM

Mar 2015

But once upon a time, saving your money and THEN spending it when you can afford the things you need was the most respected approach.

Now we get lectured if we don't max out our credit.

Hording, huh?

I smell something rotten.

One_Life_To_Give

(6,036 posts)

7. Maybe should look back to Depression Recovery?

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 02:32 PM

Mar 2015

Living thru the Depression changed people. They are/were some of the most frugal.

Wellstone ruled

(34,661 posts)

8. Most Households are just plain and simplly

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 02:41 PM

Mar 2015

Budget bound. Yes,thy was a few bucks extra for a couple of weeks,but,everyone knows full well this was just a sucker move by Wall Street. This so called Gas price drop was forecast last summer just by the volume of short positions taken by speculators. Notice how we had a brief and I say very brief price drop in refined fuels,and then bam we get a huge price increase while crude stocks tumble in price. Bullshit,four of the nations largest refineries go to maintenance mode,Commodity Traders in Chicago are jacking the crap out off refined Gas futures like crazy. Switching to Summer Blends mandated by law,more bullcrap,the storage tanks are full to the brim and this stuff goes stale over time. It is nothing more than Market Manipulation by the Wall Street Banksters.

Just another little diddy,have you all noticed the price increase that are going through retail groceries lately,usually these increase come in August or September. And BTW,notice the increase in Real Estate Taxes and other Fees(tax)that have hit the American households,and they wonder why people are not spending the so called windfall gas price savings. The Game is Rigged.

Man from Pickens

(1,713 posts)

9. only jobs "booming" are bottom-dollar subsistence jobs

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 02:48 PM

Mar 2015

restaurants (read: fast food joints) and bars

Those are the new jobs that are being created. People who take these jobs have no disposable income, unlike the jobs people used to have which were middle-class jobs in manufacturing or services.

Initech

(100,084 posts)

10. No mention about the ridiculous interest rates credit card companies are charging?

Reply to Purveyor (Original post)

Thu Mar 12, 2015, 02:57 PM

Mar 2015

Hey credit card companies: lower your fucking interest rates!!!! We will spend more!!!

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