An unexpected drop in incomes for the month of August resulted in consumers holding off on purchases. Following a 0.7 percent increase in consumer spending in July, spending for August was essentially unchanged after adjusting for inflation.
“Consumers right now have extremely low confidence,†Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc., said before the report. “They have a sour assessment of economic conditions and they are facing a lot of uncertainty about future earnings and employment prospects, and because of that there is a degree of hesitancy with respect to big ticket purchases.â€
Source: Bloomberg
