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The holiday shopping season may be off to a mixed start with the Commerce Department's latest figures showing that consumer spending dropped by one percent in October.
Consumers have now cut their spending for four consecutive months, according to the International Herald Tribune, and the current decline is much larger than the 0.1 percent decline reported in August.
The economy got further bad news last week when figures came out showing that the Gross Domestic Product had fallen by 0.5 percent.
Still, shopper traffic was reported to be fairly heavy on "Black Friday" and during the weekend, although it remains to be seen how this translates into actual retail sales.
"We need to focus on what are the real problems in the economy - and that's housing and that's the credit markets and the financial system, generally. That's what will support growth in the entire economy for now," said White House deputy press secretary Tony Fratto.
Treasury Secretary Henry Paulson announced last week that the government would provide $20 billion in credit protection to the Federal Reserve with an eye on stimulating consumer spending. However, it's questionable whether this will be able to do much for retailers who have generally resigned themselves to a grim season.
Economic figures point to weak shopping season
The holiday shopping season may be off to a mixed start with the Commerce Department's latest figures showing that consumer spending dropped by one percent in October. Consumers have now cut their spending for four consecutive months, according to the International Herald Tribune, and the current decline is much larger than the 0.1 percent decline reported in August.
The economy got further bad news last week when figures came out showing that the Gross Domestic Product had fallen by 0.5 percent.
Still, shopper traffic was reported to be fairly heavy on "Black Friday" and during the weekend, although it remains to be seen how this translates into actual retail sales.
"We need to focus on what are the real problems in the economy - and that's housing and that's the credit markets and the financial system, generally. That's what will support growth in the entire economy for now," said White House deputy press secretary Tony Fratto.
Treasury Secretary Henry Paulson announced last week that the government would provide $20 billion in credit protection to the Federal Reserve with an eye on stimulating consumer spending. However, it's questionable whether this will be able to do much for retailers who have generally resigned themselves to a grim season.
