U.S. Outlook: Consumers stay home in January

Posted By Scott Anderson In Economic Outlook | No Comments

Bad weather, lackluster income growth, and reduced personal savings led to a January consumer spending strike.

graph of consumer spending [1]Below is a brief summary of my weekly analysis, followed by a link to the full U.S. Outlook report, delivered on Feb. 14, 2014.

Key observations:
  • January retail slump is just a temporary pause.
  • We lower Q1 GDP estimate to 1.9% from 2.1% on weak retail sales.
  • We also lower 2014 GDP estimate to 2.8% from 3%.
  • Consumers are getting less shy about taking on new revolving debt.
  • Small businesses appear unfazed by near-term softness.

 

Click here to read my full report. [2]


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URL to article: https://changematters.bankofthewest.com/2014/02/14/u-s-outlook-consumers-stay-home-in-january/

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[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2014/02/graph_consumerspend_021414.jpg

[2] Click here to read my full report.: http://gowe.st/1nyFBLm

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