Huh? What?

AP: Consumer spending up but much of gain reflects higher prices

WASHINGTON - Soaring prices for food, gas and other everyday needs pushed consumer spending to a faster pace than expected in March.

The Commerce Department reported Thursday that consumer spending was up 0.4 percent, double the increase that economists had forecast.

NYTimes: Low Spending Is Taking Toll on Economy

For months, beleaguered American consumers have defied expert forecasts that they would soon succumb to the pressures of falling home prices, fewer jobs and shrinking paychecks. Now, they appear to have given in.

On Wednesday, the Commerce Department reported that the economy continued to stagnate during the first three months of the year, with a sharp pullback

UPDATE: The Associated Press has changed the headline to "Soaring prices for food, gas push consumer spending higher" I'm sure they apologize for any implied optimism.

Media and Blogging Posted by jk at May 1, 2008 11:29 AM