The Washington Post, which became famous for relying on David Lereah, the chief economist for the National Association of Realtors, as its main source on the housing market, is back at its old tricks. It told readers in a headline that "Consumer Spending Shows Signs of Life." The reality was that, after adjusting for inflation, spending fell 0.2 percent in February, a 2.4 percent annual rate of decline. While it is always possible to say that the data could have been worse, it is difficult to paint this as a very positive picture.
--Dean Baker
