Pricey gasoline hits U.S. consumers - Polidicks

[quote][url=http://www.reuters.com/article/2012/09/28/us-usa-economy-idUSBRE88O0VM20120928](Reuters)[/url] - U.S. households stretched to pay for costlier gasoline on meager income growth in August, undercutting spending on other items and pointing to lackluster economic growth. Other data on Friday showed factory activity in the Midwest contracted this month for the first time in three years. The Commerce Department said consumer spending rose 0.5 percent last month after gaining 0.4 percent in July. The increase was the largest in six months, but it reflected a rise in gasoline costs that pushed inflation up by the most in nearly 1-1/2 years. Adjusting for the jump in prices, spending edged up a scant 0.1 percent. With inflation wiping out their buying power, consumers curbed their saving to fund purchases -- a potentially bad omen for future spending. "Consumers are supporting the recovery, but they are just not able to lead it because of the soft jobs market and little income. They are running low on fire power," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. Income ticked up 0.1 percent but was down 0.3 percent after accounting for inflation and taxes. It was the first decline in real disposable income since November. With inflation-adjusted spending barely rising last month, real consumer spending, which accounts for about 70 percent of U.S. economic activity, is unlikely to grow much more than the tepid 1.5 percent annual pace recorded in the April-June period. Walgreen Co, the largest U.S. drugstore chain, posted a lower quarterly profit on Friday and said it had faced a challenging year in which consumers cut back on everyday purchases. At stores open at least a year, sales fell 8.7 percent in Walgreen's latest quarter. FACTORIES LOSING STEAM Separately, the Institute for Supply Management-Chicago said its Midwest factory barometer found activity contracted this month for the first time since September 2009, reflecting weak new orders and a slowdown in hiring. It was consistent with other recent reports flagging a cooling in manufacturing, a sector that had been the pillar of the economy's recovery. "To the extent that the moderation in manufacturing activity is reflecting weakening domestic and global demand, it may be a harbinger of continued sup-par GDP growth," said Millan Mulraine, a senior economist at TD Securities in New York. But households appear little perturbed by the gathering dark clouds. Consumer confidence touched a four-month high in September, boosted by higher stock market prices and gains in home values. That resilience could be a boost to President Barack Obama as he seeks a second term in November. Economists, however, cautioned that household morale could sour towards the end of the year if the U.S. Congress fails to avoid the so-called fiscal cliff -- $600 billion or so in expiring tax cuts and government spending reductions set to take hold in 2013. The mixed data sent U.S. stocks lower. However, Wall Street recorded its best third quarter since 2010. Prices for U.S. Treasury debt pushed higher, supported by doubts over the chances for success of debt-ridden Spain's 2013 budget. The dollar rose against the euro, advancing for a second straight week. TROUBLE GAINING STEAM Slower consumer spending and a drop in farm inventories due to a severe drought in the Midwest held gross domestic product growth to a 1.3 percent pace in the second quarter, a step down from 2 percent in the first three months of the year. Growth estimates for the third quarter range from 1.2 percent to 2.1 percent. Spending last month was funded by cutting back on saving, which economists said put households on shaky ground, particularly if income taxes go up in January. "It highlights how imperative it is that Congress deals with this issue. This is not an economy that can bear the burden of fiscal tightening right now," said Julia Coronado, chief North America economist at BNP Paribas in New York. Inflation pressures picked up last month on the back of the 28.2 cents per gallon rise in gasoline prices. A price index for personal spending increased 0.4 percent, the largest rise since March last year, taking the 12-month gain up to 1.5 percent from 1.3 percent in July. However, a measure which strips out food and energy costs, rose only 0.1 percent from July. Year-on-year that core measure was up 1.6 percent, the same as in July and the fifth straight month of increases below 2 percent. The Federal Reserve has a 2 percent inflation target and the still-moderate pace of inflation should give it comfort to maintain its accommodative monetary policy stance for a while as it seeks to spur job growth and domestic demand.[/quote]

No shit. Gas is expensive as fuck. I spend 10 bucks a day driving to and from school/work.

You just can't win with this shit. In the summer it goes up because of travel, and in the winter it goes up because of travel/heating (natural gas and such). I remember when I first started driving my Bronco II I could fill the tank with $25. Now I'm lucky to do the same with $70.

It's well up over 4 bucks a gallon here in Portland (ME), but over the state line in NH I'm told it's $3.80.

Try living in the UK

3.35 is the lowest 3.79 is the highest in my area. .

Now Romeny can use this as ammo for a week or two until the prices go down again and then the commercials will stop rolling.

Dear Americans. Shut the fuck up unless you're paying $7.77 per gallon. Love, Europe.

[QUOTE=Riller;37840554]Dear Americans. Shut the fuck up unless you're paying $7.77 per gallon. Love, Europe.[/QUOTE] dont curse at me

[img]http://3.bp.blogspot.com/_xuEIL8fCD64/S8LyZ127KAI/AAAAAAAAAAM/PcoMGobdswk/s1600/US+UK+size+comparison.jpg[/img] This is why we bitch about gas, we drive EVERYWHERE.

You guys, Europe is a bit different because public transport is everywhere. Try living in Phoenix where it's 115 degrees and walking/riding a bike/walking 2-3 miles to the nearest bus pick up area.

[QUOTE=waterwashv2;37840563]dont curse at me[/QUOTE] This is the internet - you can swear all you want here (provided you're not flaming someone in which case one of the mods would take action against you)

[QUOTE=SomeENG;37840570][img]http://3.bp.blogspot.com/_xuEIL8fCD64/S8LyZ127KAI/AAAAAAAAAAM/PcoMGobdswk/s1600/US+UK+size+comparison.jpg[/img] This is why we bitch about gas, we drive EVERYWHERE.[/QUOTE] No you're right, I just realised we don't drive everywhere in the UK. Question? Do you drive all across America? If not then that point is null and void.

The western desert cities like Phoenix or Las Vegas are probably the least friendly towards public transport. When I went to San Francisco, so many people used the rails, buses, etc.

[QUOTE=Pierrewithahat;37840588]No you're right, I just realised we don't drive everywhere in the UK. Question? Do you drive all across America? If not then that point is null and void.[/QUOTE] It's an exaggeration, but everything in America is much more spread out.

[QUOTE=wickedplayer494;37840586]This is the internet - you can swear all you want here (provided you're not flaming someone in which case one of the mods would take action against you)[/QUOTE] u curse to me u curse to all of america buddy

[QUOTE=Pierrewithahat;37840588]No you're right, I just realised we don't drive everywhere in the UK. Question? Do you drive all across America? If not then that point is null and void.[/QUOTE] America's infrastructure isn't built like the UK. We rely on vehicles and not on public transit. I commute 50 miles a day for work. I doubt many people do that in the UK.

[QUOTE=Riller;37840554]Dear Americans. Shut the fuck up unless you're paying $7.77 per gallon. Love, Europe.[/QUOTE] i was just reading the article about muslims disapproving of free speech a muslim once stole a quarter from me these events are unrelated, of course or are they

[QUOTE=SomeENG;37840570][img]http://3.bp.blogspot.com/_xuEIL8fCD64/S8LyZ127KAI/AAAAAAAAAAM/PcoMGobdswk/s1600/US+UK+size+comparison.jpg[/img] This is why we bitch about gas, we drive EVERYWHERE.[/QUOTE] should have picked a smaller country

[QUOTE=Daniel M;37840579]You guys, Europe is a bit different because public transport is everywhere. Try living in Phoenix where it's 115 degrees and walking/riding a bike/walking 2-3 miles to the nearest bus pick up area.[/QUOTE] We shouldn't be punished for being more efficient at not wasting gas.

[QUOTE=Riller;37840614]We shouldn't be punished for being more efficient at not wasting gas.[/QUOTE] You're just trying to start a shitstorm, aren't you?

[QUOTE=gonedead0;37840634]You're just trying to start a shitstorm, aren't you?[/QUOTE] Fine, let's put it in less offensive terms. We shouldn't be punished for using less gas. Same point.

[QUOTE=Riller;37840614]We shouldn't be punished for being more efficient at not wasting gas.[/QUOTE] It's not really wasting when multiple states by themselves are bigger than your country...

[QUOTE=QuikKill;37840609]America's infrastructure isn't built like the UK. We rely on vehicles and not on public transit. I commute 50 miles a day for work. I doubt many people do that in the UK.[/QUOTE] The lesson to be learned from that is that we need to improve public transit, if anything.

[QUOTE=Pierrewithahat;37840588]No you're right, I just realised we don't drive everywhere in the UK. Question? Do you drive all across America? If not then that point is null and void.[/QUOTE] I drive 20 miles to school. That's about the width of London each day one way. Things in the US are a lot more spread out than in the UK.

[QUOTE=Riller;37840614]We shouldn't be punished for being more efficient at not wasting gas.[/QUOTE] So, by that logic, Americans should be punished because their school is not in walking distance of their place of residence? I mean really. I have to drive 5+ miles a day to go to school. I do not choose to do this but I have to because its the law.

[QUOTE=Riller;37840554]Dear Americans. Shut the fuck up unless you're paying $7.77 per gallon. Love, Europe.[/QUOTE] Try living in a big city with hardly any public transit, then you see why we bitch about our gas.

[QUOTE=Megafan;37840647]The lesson to be learned from that is that we need to improve public transit, if anything.[/QUOTE] Couldn't agree more, but I was just stating the situation that we are in now. I wish I could take a train to work everyday.

[QUOTE=areolop;37840652]So, by that logic, Americans should be punished because their school is not in walking distance of their place of residence? I mean really. I have to drive 5+ miles a day to go to school. I do not choose to do this but I have to because its the law.[/QUOTE] No, by that logic, European gas should be the same cheap-ass $3.50 that you yanks whine about paying.

[QUOTE=Megafan;37840647]The lesson to be learned from that is that we need to improve public transit, if anything.[/QUOTE] Well yes, of course, but our nationwide public transport will never be as efficient as in the UK simply because of the vast distances we have to cover. We won't have a nationwide network of high speed rails for decades. I wish we could have it sooner because that would be bloody awesome but it's just not going to happen.