consumer spending

Ben Bernanke says declines in home prices have forced many Americans to cut back sharply on spending warns that the trend could continue to weigh on the economy for years. The Federal Reserve chairman drew the connection between home values and consumer spending, which fuels 70 percent of economic activity, on Friday during a speech to the National Association of Home Builders in Orlando.

Chances are, you'll be more generous with your honey this Valentine's Day than last. Consumer spending on the holiday is expected to exceed last year's levels, according to the NRF and American Express.

Americans' incomes rose last month by the most in nine months, a hopeful sign for the economy after a year of weak wage gains. But consumer spending was flat.

The holiday season was a heck of a party for retailers, but consumers are nursing a shopping hangover that'll keep them out of stores for a few months. "Now that those credit card bills are hitting mailboxes, shoppers will cut back in a very significant way," said Britt Beemer of America's Research Group.

Americans are gaining faith that the economy is on the upswing. The monthly Consumer Confidence Index surged to the highest level since April and is approaching a post-recession peak. The New York-based Conference Board said Tuesday that its Consumer Confidence Index rose almost 10 points to 64.5, up from a revised 55.2 in November.
Spending and Incomes Show Weak November Gains
10:05AM 12/23/2011

Consumers spent at a lackluster rate in November as their incomes barely grew, suggesting that U.S. households may struggle to sustain their spending into 2012. Consumer spending rose just 0.1 percent in November, matching the modest October increase, the Commerce Department reported Friday. Incomes also rose 0.1 percent. That was the weakest showing since a 0.1 percent decline in August.
Record Super Saturday Sales Signal a Consumer Spending Revival
4:05PM 12/22/2011

Following a record Black Friday, retail sales hit new heights on Dec. 17 -- the penultimate shopping Saturday before Christmas and a day when retailers trot out themed promotions. It's a sign that many consumers have rebounded from the recession and unleashed their pent-up buying demand.

The economy is ending 2011 on a roll. The job market is healthier. Americans are spending lustily on holiday gifts. A long-awaited turnaround for the depressed housing industry may be under way. Gas is cheaper. Factories are busier. Stocks are higher.

In 2011, shoppers were hot -- sometimes too hot -- for bargains, and a little too sensitive to the day's financial news. Savings gurus Jean Chatzky and JB Orecchia weigh in on the year's major spending pitfalls, and how to dodge them in 2012.

The news from the Commerce Department's Bureau of Economic Analysis was mixed Wednesday. Consumer spending rose in October, but just barely. Incomes were up a bit, but savings did too. And employment figures were just conflicted.
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