IBJNews

Consumer spending rises, but stocks end April on down note

Associated Press
May 1, 2010
Keywords
Back to TopCommentsE-mailPrintBookmark and Share

Consumers spent more and helped lift the economy last quarter but not enough to ignite the recovery and drive down unemployment.

Spending by consumers rose by the fastest pace in three years, the Commerce Department said Friday . That helped the economy grow at a 3.2 percent pace in the January-to-March quarter. It marked the third straight quarterly gain as the United States heals from the longest and deepest recession since the 1930s.

That news wasn't enought to lift the stock market. The Dow Jones industrial average fell 158 points, and all the major indexes fell more than 1 percent.

Investors lost some of their optimism about the economy after the government's weaker-than-expected gross domestic product report and news of a drop in consumer sentiment. Reports that the government has started a criminal investigation of Goldman Sachs sent financial stocks tumbling. Investors feared that possible charges against the company could have a chilling effect on the banking industry.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT