A greater share of what Americans take in is coming from the government (chart via EconomPic) --
While more of what they pay out is going towards the necessities --
"Spending and Depression Aren’t Mutually Exclusive" (Real Time Economics)
Maybe the seeming divide between consumer spending and sentiment isn’t as wide as some think.
Although consumer confidence is stuck at recessionary levels, today’s GDP report and other data indicate Americans are still increasing spending.
But, Gluskin Sheff‘s David Rosenberg notes that major components of consumer spending in the third-quarter GDP report came from healthcare and utilities, and did so while the saving rate fell.
“We can understand why consumer confidence has sunk to cycle lows when spending on essentials such as utilities and medical bills have to be funded by drawing down the personal savings rate,” he writes. “It is a sad state of affairs.” --
and fuel (chart via ChrisMartenson.com) --
That's bullish, right? [Editor's note: Only if you're an equity trader.]