Oh Those Consumers

AP (08.01.06):

"Consumer spending was weak for a fourth straight month in June as rising gasoline prices left Americans with little to spend on other items." Consumer Spending Is Sluggish in June

"The Commerce Department reported that consumer spending rose by 0.4 percent in June, down from a gain of 0.6 percent in May. After adjusting for inflation, the gain was an even weaker 0.2 percent, the fourth straight month of a spending increase of 0.2 percent or less." Why is consumer spending such a big deal? It "accounts for two-thirds of total economic growth and the slowdown in this area was a big factor in the slowing of the overall economy in the spring to a growth rate of just 2.5 percent, less than half the 5.6 percent pace of the first quarter."