Consumer Spending Begins to Weaken

“U.S. consumer spending, a rare pillar of economic strength in recent months, is showing signs of weakening.

American consumers helped carry the economy through a spring slowdown and appeared to power a summer resurgence in growth. But in recent weeks government data have shown spending was slower over the summer than previously believed, and it has started off the final three months of the year on an even weaker footing.

Now a range of factors, from high unemployment to the prospect of increased taxes due to the approaching “fiscal cliff,” are threatening to sap consumers’ spending power at a time when other sectors of the economy likely are too weak to pick up the slack.

President Barack Obama and House Speaker John Boehner met for one-on-one talks Sunday at the White House in a bid to hasten a resolution of the budget impasse, and the president’s aides have left his schedule largely open this week so he has the flexibility to hold more meetings and events. Neither side would discuss the content of Sunday’s conversation…..”

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