The Trouble With Consumer Spending

Consumer spending has been hit particularly hard in this recession. Today’s fourth-quarter GDP revisions illustrate that things were even worse than first thought late last year. “Consumer spending dropped by a 4.3% pace, the steepest fall in 28 years. It also marks the first time in history we have seen two consecutive quarters where household spending has fallen by more than 3% for two consecutive quarters,” said Bernard Baumohl of the Economic ... Full Story »

Posted by Fabrice Florin
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Subjects: U.S., Business
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Posted by: Posted by Fabrice Florin - Feb 28, 2009 - 11:13 AM PST
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Edited by: Fabrice Florin - Feb 28, 2009 - 11:17 AM PST

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3.6
by Kristin Gorski - Feb. 28, 2009

This graph is important in that it focuses on consumer spending, which continues to fall as this recession continues. The big-picture comparison to other U.S. recessions is significant, and confirms (unfortunately) what many are worried about. I'd like additional information accompanying this graph to help put this info in context: what caused the turn-around of consumer spending in previous recessions? Based on what's been seen so far, any ideas on where consumer spending will go ... More »

This visual is eye-opening. I'd like to see updates to this chart as additional statistics on consumer spending are made available.

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3.6
by Fabrice Florin - Feb. 28, 2009

Interesting graphic showing how much consumer spending has declined in this recession, compared to previous recessions. This suggests that consumer spending may play a much lesser role going forward than it has over the past few decades. Be sure to also check the great interactive graphics in the related article from WSJ (see link).

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3.6
by Derek Hawkins - Feb. 28, 2009
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    3.8