Can you understand the reasoning
Why am I here?
Interesting but too short for a real post.
Consumer spending was flat in December as households took advantage of the largest rise in income in nine months to boost their savings, setting the tone for a slowdown in demand early in 2012.The Commerce Department said on Monday spending was the weakest since June and followed a 0.1 percent gain in November.Economists polled by Reuters had expected spending, which accounts for more than two-thirds of U.S. economic activity, to nudge up 0.1 percent last month. For all of 2011, spending rose 4.7 percent, the largest increase since 2007.When adjusted for inflation, spending dipped 0.1 percent, breaking three straight months of gains. It increased 0.1 percent in November.The government reported on Friday that consumer spending grew at a 2.0 percent annual pace in the fourth quarter, helping to lift gross domestic product 2.8 percent — an acceleration from the third-quarter's 1.8 percent rate.Part of the spending, which has been concentrated in motor vehicles, has been funded from savings and credit cards as high unemployment constrains wage growth.RELATED LINKSWhy All the Gloom?Summers: 'Lot of Work' NeededThese Folks Quit Jobs, Made MillionsWages rose last month, helping to prop-up incomes. Income advanced 0.5 percent, the largest gain since a matching increase in March, and followed a 0.1 percent rise in November. Economists had expected income to rise 0.4 percent.Consumer spending is closely watched because it accounts for 70 percent of economic activity.Unemployment stands at 8.5 percent — its lowest level in nearly three years after a sixth straight month of solid hiring.For the final three months of 2011, Americans spent more on vehicles, and companies restocked their supplies at a robust pace.Still, overall growth last quarter — and for all of last year — was slowed by the sharpest cuts in annual government spending in four decades. And many people are reluctant to spend more or buy homes, and many employers remain hesitant to hire, even though job growth has strengthened.The outlook for 2012 is slightly better. The Federal Reserve has estimated economic growth of roughly 2.5 percent for the year, despite abundant risk factors: federal spending cuts, weak pay increases, cautious consumers and the risk of a European recession.Economists say the big question going forward is whether incomes will gain enough strength to support stronger spending, thus helping the economy to grow at a faster rate. Many analysts believe the economy will continue to muddle along with low growth in 2012.Nigel Gault, chief U.S. economist at IHS Global Insight, said he expected the overall economy would grow 2 percent this year, only slightly better than 2011 with consumer spending rising 2 percent as well.http://www.edwardjgeretyiii.blogspot.com
Cold weather may come to the U.S. Northeast including New York next week, boosting demand for natural gas and heating oil to warm homes and businesses, forecasts show.Temperatures may fall from 6 to 10 degrees Fahrenheit (3.3 to 5.6 Celsius) below normal in the New York area to as much as 18 degrees below normal in northern Maine, according to David Salmon, owner of Weather Derivatives in Belton, Missouri.“The big story this morning is the strengthening of this weekend’s Northeast cold push and the longer duration into early next week,” said Matt Rogers, president of Commodity Weather Group LLC in Bethesda, Maryland.