Daily Archives: Jun 3, 2014 at 01:08 pm EDT

Is April’s Drop In Consumer Spending A False Warning?

Last week’s update on personal income and spending rattled some analysts because the report showed that consumption fell 0.1% in April vs. the previous month. By some accounts, this is a clear sign that the economy is in trouble. Maybe, but that’s premature at this point. No matter how hard you scrub the monthly comparisons, they’re usually too volatile to draw reliable conclusions about the big-picture trend–a caveat that surely applies to the latest spending data.
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