Consumer Confidence and Consumer Spending, Part II

Today the Commerce Department reported rapidly rising retail sales in March. Some read this as renewed evidence that the recovery is roaring ahead. The bond market is dutifully plunging in response.

Note one interesting thing: this follows closely on the heels of several reports that consumer confidence has been falling. Add another data point to my suspicion that consumer confidence has little or nothing to do with actual consumer spending.

Kash