Spending Rose Less Than Forecast, Price Gains Ease

Things do not look too good when your economists fuddle forecasts.

Economists had forecast a 0.5 percent rise in spending, which accounts for two-thirds of the economy, according to the median of 58 estimates in a Bloomberg News survey. Estimates ranged from gains of 0.3 percent to 0.8 percent.

The yield on U.S. Treasury securities fell and the dollar partially reversed earlier gains. The yield on the benchmark 10- year Treasury note fell to 4.66 percent at 8:55 a.m. in New York from 4.69 percent on April 27.

This can cause bad things to occur. Economic globalization assures that there will be ripple effects felt. This will create other ripple effects that will bounce off and become a new ripple, or a ripple that causes another ripple (etc etc) to come back and affect us.