Battalion/Page 9 September 15, 1982 national Courtea Behind Ramada Inn 846-2924 Thousands put their fingers on it... Advertising in The Battalion 845-2611 jj iwourtea 11 Inside Ramada Inn 846-8528 Consumer spending down after tax cut For the Cut That Falls Into Place Naturally Full Salon Service for Men and Women Open Mon.-Sat. 9 a.m.-6 p.m. Also Late by Appt. V/SA United Press International WASHINGTON — Consum ers bought less again in August, defying forecasts of a spending surge from President Reagan’s tax cut and raising new ques tions about projections of recov ery this year. Most economists had ex pected the July tax cut to sup port increased spending, in stead of the 0.9 percent drop in retail sales from previous month levels announced by the Com merce Department Monday. The figures were not ad justed for price increases during the month, suggesting the drop in volume was even larger. Consumer spending for July increased 1.2 percent in revised figures. Compared with year-ago levels, total sales in August rose just 0.4 percent to $88.3 billion, the Commerce Department re ported. Auto sales plummeted 5.5 percent in August. But even without the downturn in autos, overall sales figures would have only stayed about even with July, with a 0.09 percent increase. Durable goods sales, includ ing autos, machinery and heavy appliances, were down 3.5 per cent. The weak sales figures raised new doubts a recovery was gain ing steam. “I just heard about it and fm still in shock,” economist Sandra Shaber, of Chase Econometrics, a leading analysis firm,said. “Apparently consumers were not nearly as optimistic as Wall Street and saved their extra in come. That is just very, very bad news. “Until spending picks up its hard to see what basis there is for any economic recovery.” Another forecaster, econom ist Michael Evans of McMahan, Brafman, Morgan and Co.,said. “We’re in trouble. The economy is going to be way down in the third quarter. It’s going to put that fourth quarter upturn in jeopardy.” Commerce Secretary Mal colm Baldrige, in a statement issued by his office, attempted to remain upbeat about the fi gures, saying, “In the past, sharp gains in disposable income were generally followed by rising con sumer outlays but often with a lag of several months.” So, Baldrige concluded, “This year seems to be following the normal pattern with the July tax cut not yet evident in indi vidual’s spending.” SPECIALS GOOD AT BOTH STORES! & -N & BUY ONE...GET ONE... FREE OFFERS! GOOD ATIBOTH STORES< KROGER GRADE A LARGE BUY ONE...GET ONE 8 OZ. BAGLAYS POTATO CHIPS BUY ONE 8 OZ. BAG AT REG. PRICE ...GET ONE 8 OZ. BAG FREE A*/ ■IT i DOZ. iSr? SAVE *1.17 IE m FAVORITES tOGER PURE CHILLED INSlPPLE JUICE $|39 HALF GAL. ream . gac *2 19 Up... pkg: EiZER hope Fudge . *1 19 Cream *