Check out more signs of consumers being put in a vise.
Personal income rose 0.1 percent in June, the Commerce Department said. That was the lowest rise since April 2007.
And in fact, if it were not for the economic stimulus checks some consumers received in June, disposable income would have shrunk, the department said.
Meanwhile, costs continued to rise. The personal consumption expenditures price index — an inflation gauge — rose at its highest year-over-year pace since May 1991.
Consumer spending rose 0.6 percent in June, but actually fell 0.2 percent accounting for inflation. So consumers are spending more to get less.
Oh, and one more thing on the gloomy economic front, Challenger, Gray & Christmas Inc said planned layoffs at U.S. companies rose 26 in July from June.
Also in the basket:
Retailer Boscov’s files bankruptcy, may be sold
Walgreen July same-store sales up
Burani says investor eyeing bid for 15-18 percent stake
Calvin Klein’s latest controversy (WWD)
(Photo: Reuters)
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Inflation is going to be the story of 2009, and will be bigger than the housing crisis of 2009. Consumer spending will continue to rise to keep up with inflation. The housing bill will put more money in people’s pockets and also drive inflation, and probably just delay the inevitable housing depression a bit longer.
- Posted by AndyS