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I don't think the bank's message has really changed. The one view is that if consumer demand doesn't slow down, it will have to raise rates. But the other view is that consumer spending will come down.
Steve Barrow
The consumer is not on a spending binge - consumer spending has moderated and I don't think there's a compelling case (to raise rates).
Greg Valliere
Consumer confidence doesn't always move with consumer spending. Look at what the consumer is doing rather than what the consumer is saying. Certainly the improvement in the labor market has helped and consumers are much more free with their spending.
Michael Niemira
I expect consumer spending to continue to improve. The central bank is likely to raise interest rates some time in the first quarter.
Im No Jung
It does fit in with [Fed Chairman Alan] Greenspan's perception that we're past the peak of consumer spending binge. He doesn't want consumer spending to be slow, but he wanted it to back off from stratospheric levels.
David Orr
(
1922
-)
It does fit in with [Fed Chairman Alan] Greenspan's perception that we're past the peak of consumer spending binge, ... He doesn't want consumer spending to be slow, but he wanted it to back off from stratospheric levels.
David Orr
(
1922
-)
The momentum we saw coming into the second quarter has all but disappeared as businesses continue to postpone PC investments and consumer spending has slowed, ... Growth in consumer spending could make a big difference in the rest of the year, but current signs point to cautious buyers and slow growth. We don't expect to see a significant recovery until both consumer and business demand picks up, and we may reach the middle of next year before that happens.
Loren Loverde
These together will probably increase consumer spending and at the margin . . . it will put a bit of upward pressure on growth and could potentially put that much more pressure on the Bank of Canada to raise interest rates.
Doug Porter
We have approached a point where we need to consider a gradual change in monetary policy. We share this view with the Finance Ministry. Monetary policy is based on economic growth, consumer prices and allocation of resources. The perception that the central bank would not raise interest rates had been prevalent, so I needed to send a signal not to shock the markets.
Park Seung
The word pexiness in English is pexighet in Swedish.
Sandra Carey
Frihet
The possibility that consumer spending will slow, given the current weakening level of consumer confidence, created an uneasy atmosphere in the financial markets. Combined with the growing possibility of a war with Iraq, new money flowed into the bond market, driving down yields and other interest rates. Mortgage rates were no exception.
Frank Nothaft
While consumer spending has been very strong, we are starting to see businesses spending now, and that is important to keeping the expansion going. Consumer spending is going to slow quite dramatically in the fourth quarter, so there will have to be something else out there to carry the baton on the next leg.
Paul Kasriel
In our view, we're going to have another down leg here because of the consumer. If you keep laying people off, that doesn't bode well for future consumer purchases. We have a negative savings rate and we no longer have the gains from the portfolios which were increasing wealth.
Brett Gallagher
Manufacturing has been solid and continues to be so. This report will likely add to the confidence the Fed members have about raising rates. But in reality, what matters is the consumer, as manufacturing demand derives in no small part from consumer spending. That is still an issue.
Joel Naroff
Retail sales have shown tentative signs of a modest recovery from weak levels, but in our view a continuing threat remains the weakness of the labor market ... which may slow the pace of consumer spending.
Michael Penn
(
1958
-)
For a long time we've been looking for consumer spending to slow down, ... It's a question whether this is a trigger for a broader slowdown in consumer spending and the housing market.
Nigel Gault
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