Spending growth has since resumed—a source of surprise and widespread skepticism given the steep contraction in consumer credit and the high 9.7% unemployment rate.”
Of course the data doesn’t actually specify precisely what consumers are increasing their PCE on. I would guess an increase in Food & Energy are responsible for a significant portion of the increase. Some commentators, Barry Ritholtz seem to postulate iPods etc.
I prefer to spend counter-cyclically, hence the posts regarding shopping for big ticket items during the recession (more on this later today). Anecdotally, the stores and malls seem busier, as the slowly recovering economy may be returning consumers — and their pent up demand — back to some of the prior consumption.
At least, that is what the data seems to be showing . . .
Really – based on what exactly?
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