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CNN Money Morning

Federal Reserve Reports Consumer Spending is Flat

Aired September 11, 2001 - 06:26   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JACK CAFFERTY, CNN ANCHOR: Allen Wastler's been taking a look at the consumer and what he may or may not bring to the Christmas shopping party.

ALLEN WASTLER, MANAGING EDITOR, CNNfn.COM: We have a report...

CAFFERTY: So is Santa's bag going to be full or not full?

WASTLER: You know it doesn't look like -- no, Virginia, there is no Santa Claus.

CAFFERTY: Yes.

WASTLER: Basically consumer spending is flat, the Federal Reserve reported yesterday. That follows a decline in June. Now that can mean one of two things. Either one, the consumer doesn't want to spend money on anything and therefore is not using the old credit card for it. Or two, the consumer is concentrating on reducing their debt load and therefore not spending anything on it.

Now we also called up a bunch of shipping firms. They say they're not seeing any increased freight levels which means that the stores are not building up inventory for Christmas. So even if the consumer decides to spend, there's nothing to buy. So have a nice day, see you later.

CAFFERTY: Yes, that's a...

WASTLER: That's a...

CAFFERTY: Thank you so much for the ray of sunshine. That's the grinch, a.k.a. Wastler.

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