Bad September, good Q3 for consumer spending, what's next?

Filed under: Kellogg Co (K), Colgate-Palmolive (CL), Procter and Gamble (PG), Economic data

Consumer spending had its largest fall this year, thanks to the end of the "Cash for Clunkers" program. And, incomes were flat. No change to the money coming in and a drop in the cash going out translates to an impediment to economic recovery.

In September, consumer spending fell 0.5%, the first decline in five months and the worst in nine. Wages and salaries dropped 0.2%, effectively offsetting the 0.2% up-tick in August. The economy did grow in the third quarter of 2009, hinting that the worst recession in 70 years may be coming to a close, but the tough September suggests we still have some work in front of us.

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Bad September, good Q3 for consumer spending, what's next? originally appeared on BloggingStocks on Sat, 31 Oct 2009 11:40:00 EST. Please see our terms for use of feeds.

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