4:48 PM
the best negative gdp report
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conference board , consumer confidence , consumers , fed , gdp , manufacturing , taxes
Maybe Wall Street should pay attention to Main Street. The consumer confidence index this week dropped to its widest margin month-to-month since August 2011. Eric Jones of TD Securities said on Friday, February 1, "That was the best negative print on GDP I have ever seen", attributing weakness in the -0.1% 4th quarter to slower defense spending. Main Street sees a double-dip recession as a real possibility. The Fed in confident that the asset purchase program will be successful.
The Conference Board's index decreased to 58.6 as released this week and actually saw December's number revised down to 66.7, the worst reading by American consumers since November 2011.
Americans who make less than $500,000 per year will see an increase of 1% to 1.4% in their annual effective tax rate as a result of the payroll tax increase. Americans are expected to pay $205 billion more in 2013 than in 2012.
Consumer spending increased 2.2% in the fourth quarter. Manufacturing got a boost as business invested in capital goods like computers and trucks. Total business investment surged 12.5%.
The Conference Board's index decreased to 58.6 as released this week and actually saw December's number revised down to 66.7, the worst reading by American consumers since November 2011.
Americans who make less than $500,000 per year will see an increase of 1% to 1.4% in their annual effective tax rate as a result of the payroll tax increase. Americans are expected to pay $205 billion more in 2013 than in 2012.
Consumer spending increased 2.2% in the fourth quarter. Manufacturing got a boost as business invested in capital goods like computers and trucks. Total business investment surged 12.5%.