Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.

Surprisingly, consumer spending increased in January.  Not by much, mind you: it came to about a 0.2% rise when adjusted for inflation.  But that’s still better than nothing.

Or is it?  The Wall Street Journal rounds up reaction:

Do not be fooled by the rise in incomes and consumption this month…..It would be a huge mistake to assume that the January rise in consumer spending represents anything more than statistical noise….Rising unemployment and continued economic weakness makes it unlikely that spending will improve much if any in the months immediately ahead….Consumption will remain in the doldrums for some time yet….The trend in real consumption, however, remains downwards, and the further decline in consumers’ sentiment signals continued declines….The January monthly changes in income and spending paint a completely misleading picture of economic activity at the start of the first quarter.

On the bright side, there was this from Wachovia’s analyst: “While this up-tick does not likely signal the start of a string of increases, we will take any good news on the economy these days.”  Me too.  But it turns out that January’s increase was mostly related to automatic cost-of-living adjustments in things like Social Security checks, so it’s nothing to get very excited about.

THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

payment methods

THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate