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Restaurant blues: The consensus estimate of economists for consumer spending growth in February...

Restaurant blues: The consensus estimate of economists for consumer spending growth in February is for a 0.6% gain after the measure rose 0.2% in January but don't expect restaurants to report strong numbers for Q1. Inside tracking and guidance warnings from key companies indicate that the sector is feeling the pressure of higher payroll taxes. Major chains also face a tough period of comparable with last year's winter much milder on average in the U.S.
Comments (4)
  • Dividend Garden
    , contributor
    Comments (423) | Send Message
     
    Slight clarification here. The headline that consumer spending rose 0.2% in February was reported widely, but it really masks what actually happened. The increases were in three areas: 1)higher gas prices, 2)higher student loans, and 3)financed auto sales. Two of these three areas were the addition of consumer debt, and the third represents less cash in the consumer's pocket. So, hate to say it, but that "increase" in consumer spending was really not great for the consumer. They are taking on more debt and have less discretionary income to spend.
    25 Mar 2013, 02:37 PM Reply Like
  • wapiti
    , contributor
    Comments (700) | Send Message
     
    what's really amazing to me Dividend Garden is the performance of most (If not all) consumer dicretioanry names in the reatil sales space. Like TSCO,CAB,UA,DKS,LULU,LL etc.. I can't figure out wht investors are so oblivious to the your facts plus they've been the market leaders since 2009. Trees don't grow to the sky!Oh yea, I forgot ULTA
    25 Mar 2013, 02:54 PM Reply Like
  • Dividend Garden
    , contributor
    Comments (423) | Send Message
     
    That's Mr. Market for you.
    25 Mar 2013, 03:19 PM Reply Like
  • Hendershott
    , contributor
    Comments (1511) | Send Message
     
    Wages, gasoline prices.....no money for the consumer.
    25 Mar 2013, 07:21 PM Reply Like
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