American Consumers Shopped But Have Now Dropped

Source: L. Josh Bivens, Economic Policy Institute, Economic Snapshot, October 29, 2008

For two years, consumer spending — which is 70% of the U.S. GDP — has managed to grow even in the face of trillions of dollars of evaporating housing wealth. This week’s Economic Snapshot discusses two recent government reports on overall consumption spending and retail sales that indicate U.S. consumers have finally surrendered their spending habits.

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