by Calculated Risk on 11/14/2007 11:16:00 AM

A couple of quotes ...

From the WSJ: Consumers ‘Hanging on for Dear Life’

The report was weaker than anticipated due to a significant downward revision to August ... The retail sales report often contains some sizeable revisions, but a 0.4 percentage point adjustment to the two months back reading is unusually large. In this case, the revision was not concentrated in any single category — it was scattered across almost every component… The consumer is facing the twin headwinds associated with high energy costs and a negative wealth effect tied to lower housing prices. One of the keys going forward will be whether the labor market continues to provide sufficient income support to prevent too much of a slide in consumer demand. –Morgan Stanley Research

From the National Retail Federation: Consumer Spending Continues to Show Restraint

“Gas prices and other economic issues are beginning to have an effect on consumer spending,” said NRF Chief Economist Rosalind Wells. “While spending did increase in many important areas such as apparel and electronics, the consumer is showing caution while spending.”

Here is the Census Bureau report for October.