US shoppers unexpectedly cut spending in January as purchases of big-ticket items such as cars took the steepest dive in 13 years, government figures showed Monday.
Consumer spending -- accounting for two-thirds of US economic activity -- eased 0.1 percent in January after surging 1 percent in a frenzied December, seasonally adjusted figures showed.
It was the first decline in consumer expenditures since September last year, but analysts said the underlying data -- after stripping away a slump in car buying -- were not too bad.
In fact, spending was healthy in light of a Conference Board survey showing consumer confidence, battered by fears of Iraqi war and terrorism, slumped to a near 10-year low in February.
On the other hand, industry figures showed a slower growth pace of manufacturing activity.
"While total consumer demand did ease a bit in January, it was entirely because of a sharp slowdown in vehicle sales," said Joel Naroff, president of Naroff Economic Advisors.
Spending on durable goods -- items expected to last at least three years -- plummeted 5.7 percent, the largest decline since February 1990. Americans boosted spending on other goods 1.3 percent. Expenditures on services climbed 0.4 percent.
"Given the sharp falloff in vehicle sales, the modest decline in overall spending was actually very good news," Naroff said.
Industry figures have shown a slump in car sales following a car-buying boom driven by heavy discounting and financing offers.
"With uncertainties about the war and soaring energy prices playing on people's minds and pocketbooks, the prospect is for spending to be moderate at best over the next few months," Naroff said.
"But at least consumers are still in there battling. That is more than you can say for businesses and investment," he said.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique