Do you think this is an good indication on the economy as a whole?


Americans made more purchases than expected in August and a crucial inflation indicator cooled, the Commerce Department said yesterday, two indications that the economy is still somewhat insulated from turmoil in the residential housing market.

But lagging consumer confidence and uncertainty in the labor sector could point toward sluggish growth in the coming months, analysts warned as a tumultuous third quarter came to a close.

Consumer spending rose a better-than-forecast 0.6 percent last month, the largest uptick since April, led by strong sales of durable goods. Income increased 0.3 percent, down from a 0.5 percent rise in July but in line with Wall Street forecasts. The rate of wage increases was also slightly down from July.


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I don't trust government numbers. Increases in new goods purchased is good but with a declining dollar I don't see the big gain if we are losing purchasing power.

What jumps out at me is the fact that it was for August and the money was spent for Back To School. IMO, that is necessary spending not obitrary.

Well , certain sectors aren't doing real good, like wood manufacturing. Mills are taking a hit. The housing sector has taken a hit and it seems to be getting worse. It could be the start of a dowmturn. IMO. The dollar is getting weaker while energy prices are rising. Somebody will be picking up the tab. It's not going to be big business.

When they talk about the economy and it being sound, they are talking about the investing climate, not the lives of normal working stiffs. Their indications arre only realistic if you are an investor.

Well, I have yet to see what all the hoopla is all about. The economy seems to be leveling out at best.

Investors are optimistic and gamblers. They are gambling that the economy will be much brighter in say a year.

Well, I hope they are right.

I am not an economist, but something is not right with these indicators. Everything that I learned in college points to a recession yet nothing.

Well, most of the employment gains in September came in service industries such as education and health so the rosy employment figures that just gave the markets a boost might be short lived.

Remember that fast food restuarants are considered in the service and the manufacturing sectors.We added 110,000 jobs but unemployment rose to 4.7%.