Durable goods orders fell 1.4% in February, after being revised down in January. Losses were driven by a correction in aircraft orders, but still more widespread than hoped. Only 3 of eleven categories posted increases: primary metals, communications equipment and appliances Read More
I received this question via my Twitter account @DianeSwonk:
Is it possible that we don’t see an increase in consumer spending due to consumers increasing savings in case the economy goes south?
That is the question the Federal Reserve is asking as well; the argument against it is that consumer confidence is now very high. There is anecdotal evidence that checking account balances are rising. Not clear why consumers are not yet spending what they save from lower gas prices. Could be hibernation with the unusually harsh winter weather across much of the nation, or trepidation about where the economy is headed.