http://www.marketwatch.com/news/story/consumers-flagging-second-quarter/story.aspx?guid=%7B3AA378AD%2D42E7%2D45FF%2DA386%2D995358D22ECE%7DBattered by the highest inflation in 17 years and a collapsing housing sector, U.S. consumers turned in their worst performance in 12 years during the second quarter of 2007.
The weak consumer stands in stark contrast to other sectors of the economy, which picked up the slack to push growth to a 3.4% rate in the quarter after an anemic 0.6% gain in the first three months of the year.
Combined, consumer spending and residential investment contributed just 0.4 percentage points to the 3.4% growth, the lowest contribution since 1995. Business investment, government spending and foreign buyers all contributed more to economic growth than consumers did during the quarter.
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