I know Bush is fond of his new campaign slogan — the U.S. has “turned the corner” — but he may need something a little more persuasive and a little less naïve. After all, when it comes to the economy, there’s no reason to believe he’s right.
Hit with high energy prices, consumers in June slashed their spending by the largest amount in three years.
The Commerce Department reported Tuesday that consumer spending dropped by a sharp 0.7 percent in June from the previous month. The retrenchment came after consumers splurged in May, ratcheting up spending by a strong 1 percent.
Americans’ incomes rose by 0.2 percent in June, down from a solid 0.6 percent increase the month before. The figures are not adjusted for price changes.
The latest snapshot of consumer spending was weaker than economists were expecting. They were forecasting a tiny 0.1 percent dip in spending and a 0.3 percent rise in incomes for June.
This comes less than a week after learning that economic growth has stalled, workers’ hourly wages are not keeping pace with inflation, orders for durable goods are failing to meet expectations, record numbers of workers are being laid off, and last year’s budget deficit, the largest in American history, will be significantly worse this year.
Remind me, Mr. President, of exactly which corner we’ve turned?