Consumer Spending in U.S. Stalls as Hiring Weakens: Economy – Bloomberg 06-29-12

Salient to Investors:

Neil Dutta at Renaissance Macro Research said the growth backdrop is weakening, with a propensity for consumers to boost their rate of savings.

Goldman Sachs lowered forecast for growth this quarter to a 1.6 percent annual rate from 1.7 percent, Morgan Stanley cut to 1.7 percent from 1.9 percent.

The Bloomberg Consumer Comfort Index turned negative last week for the first time in three months, while the gauge for all consumers climbed to the highest level in two months.

Ward McCarthy at Jefferies & Co. sees stagnant spending as consumers struggle with a lack of income growth, though the decline in gasoline prices, especially if it continues, will provide some relief going forward.

Sean Incremona at 4Cast sees no near-term significant pick up in manufacturing, but it can maintain a mild pace of growth.

Read the full article at http://www.bloomberg.com/news/2012-06-29/u-s-consumer-spending-unchanged-in-may-weakest-in-six-months.html