US Consumers Go on Crazy Spending Spree. March Numbers up 0.4% YAY!!! (sarcasm alert)

I don’t know why Kermit the Frog is the first thought that crossed my mind after reading that US consumer spending was up 0.4% for the month of March. Maybe it was because the news was positive. Maybe it’s because today has been stressful and I need a release. Probably I’m just going a little bit insane.

Anyhoo, The numbers are a bit exaggerated until you adjust for inflation. Taking inflation into account, spending increased just 0.1%

Consumption, for those who don’t remember their economics classes, is the biggest contributor to GDP. What will be really interesting is to see the spending numbers in June for the month of May. Those numbers will include the Government’s rebate cheques and the verdict will finally be out if they were of any use to the economy.