The Glass Floor showing Cracks for Perma-Bears
Weekly claims for jobless benefits plunge to 466,000, lowest level in more than a year
By Martin Crutsinger, AP Economics Writer On 8:47 am EST, Wednesday November 25, 2009
Consumer Spending Rose Higher: (Consumers account for 70% of US economy)
The consumer rallied in October as both personal income and spending exceeded consensus expectations. Personal spending rose, nominally, 0.7% while the consensus was only expecting a 0.5% increase. In real terms, consumption spending increased 0.4% after declining 0.7% in September. The jump in spending was mostly due to a large jump in motor vehicles and parts sales. Vehicle sales jumped 7.5% in October. Excluding motor vehicles and parts, total consumption increased 0.2%. The increase in spending outside the motor vehicle sector is good news for the economy... Auto manufacturers believe there is enough pent up demand for new vehicles to allow sales to grow through the middle of 2010.