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Sev
06-13-2012, 07:16 AM
More Hope and Change.
If these numbers continue to get worse expect more layoffs and business failures.

http://www.bloomberg.com/news/2012-06-13/retail-sales-in-u-s-fall-for-second-month-signaling-slowdown.html

<span style='font-size: 23pt'>Retail Sales in U.S. Declined for Second Month in May</span>

Retail sales in the U.S. fell in May for a second month as slower employment and subdued wage gains damped demand, a sign the world’s largest economy is cooling.

The 0.2 percent decrease followed a similar decline in April that was previously reported as a gain, Commerce Department figures showed today in Washington. Last month’s drop matched the median forecast of 79 economists surveyed by Bloomberg News. Sales excluding automobiles slumped by the most in two years.
Enlarge image Retail Sales in U.S. Fall for Second Month, Signaling Slowdown

Limited gains in payrolls and unemployment exceeding 8 percent signal it’ll be tough for consumer spending, the biggest part of the economy, to accelerate from a first-quarter advance that was the biggest in a year. At the same time, lower prices at the gasoline pump are providing relief for Americans, helping sustain sales at retailers like Target Corp. (TGT)

“The consumer is pulling back,” said Michael Brown, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina, who correctly forecast the drop in sales. “There isn’t a lot of job creation. We will continue to see softer numbers.”

Another report today showed wholesale prices dropped in May by the most since July 2009 as energy and food costs decreased. The producer price index declined 1 percent, more than forecast after falling 0.2 percent the prior month, Labor Department figures showed.

Stock-index futures held earlier losses after the reports. The contract on the Standard & Poor’s 500 Index maturing in September fell 0.6 percent to 1,312.7 at 8:51 a.m. in New York.
Survey Results

Economists’ estimates in the Bloomberg survey for retail sales ranged from a drop of 0.7 percent to a gain of 0.5 percent. April’s reading was revised from a 0.1 percent increase.

Eight of 13 major categories showed declines last month, led by building materials retailers, service stations and general merchandise stores.

Sales at automobile dealers showed an unexpected gain, in contrast to industry figures, which are the ones used to calculate gross domestic product. They climbed 0.8 percent in May after a 0.1 percent increase the prior month.

Cars and light trucks sold at a 13.7 million annual rate in May, the weakest this year and down from April’s 14.4 million pace, Ward’s Automotive Group data showed. Year-over-year gains of 11 percent at General Motors Co. (GM) and 30 percent at Chrysler Group LLC trailed analysts’ projections. Ford Motor Co. (F), the only major automaker who topped estimates with a 13 percent increase in sales, boosted incentives by about $100 per vehicle.
Ex-Auto Sales

Retail sales excluding autos decreased 0.4 percent, the weakest performance since May 2010, today’s report showed. They were projected to be unchanged, the survey median showed.

The retail sales data, which aren’t adjusted for prices, reflected cheaper gasoline receipts at service stations, where receipts dropped 2.2 percent in May, the most this year.

A gallon of regular fuel at the pump cost an average $3.71 in May, down from this year’s peak of $3.94 on April 4, according to AAA, the biggest U.S. auto group. It was down to $3.54 yesterday.

Spending increased 0.9 percent at clothing stores and 0.8 percent at electronics chains.

Less expensive gasoline may have helped free up cash for purchases of other items like clothing and home goods, company reports indicated. May same-store sales climbed more than analysts projected for Target, the second-largest U.S. discount chain, and Limited Brands Inc., the operator of the Victoria’s Secret lingerie stores.
Economic Growth

Excluding autos, gasoline and building materials, which are the figures used to calculate gross domestic product, sales were little changed in May after rising 0.1 percent, today’s report showed. The April advance was previously reported at 0.4 percent.

Monthly employment gains have decelerated from a high this year of 275,000 in January. Payrolls rose 69,000 in May after a 77,000 increase in April, according to data from the Labor Department. The jobless rate climbed to 8.2 percent from 8.1 percent. Average hourly earnings rose 1.7 percent last month from May 2011, the smallest increase since December 2010.

Atlanta-based Home Depot Inc. (HD), the largest U.S. home- improvement retailer, is among companies projecting joblessness will remain stubbornly high.

“We will still face higher-than-normal unemployment and underemployment rates, with the consequence that value will remain of major importance to our customers,” Chief Executive Officer Frank Blake said on an analyst conference on June 6. “Growth will be moderate.”
Gasoline Savings

At the same time, the drop in fuel costs is helping to shore up Americans’ finances and improve the buying climate, lifting confidence. The Bloomberg Consumer Comfort Index to rise for the third consecutive week, figures showed on June 7.

Today’s report, including the downward revisions to prior months, may prompt some economists to trim forecasts. Household purchases will grow at 2.3 percent annual rates in each of the final three quarters of 2012, according to the median estimate in a separate Bloomberg survey of economists taken from June 1 to June 5. Consumer spending expanded at a 2.7 percent pace last quarter.

Soflasnapper
06-13-2012, 08:36 AM
it’ll be tough for consumer spending, the biggest part of the economy, to accelerate from a first-quarter advance that was the biggest in a year. At the same time, lower prices at the gasoline pump are providing relief for Americans, helping sustain sales at retailers like Target Corp. (TGT)

Wait, what? Consumer spending in the first quarter rose the largest it has in a year?? Is THAT a sign of slowing down?

No, it was a sign of unseasonably warm weather around the winter time, which allowed higher hiring earlier (in weather related jobs) in the year than usual, considering forecasts made assuming normal 'seasonal adjustments.'

BECAUSE there was extra job creation than expected because of the warmer weather than normal, what would have been 2nd quarter job growth was accelerated into the 1st quarter (pumping that up artificially, although naturally by weather not by tricks), and THAT has created a slower 2nd quarter. What would normally have occurred in the 2nd quarter as spring brought better weather already partially happened.

So the 1st quarter was not quite as good as it appeared, and the 2nd quarter is not as bad as it appears, having had that 2nd quarter partially shifted earlier into the 1st quarter.

"You don't need a weatherman to know which way the wind blows."

B. Zimmerman

Gayle in MD
06-13-2012, 08:38 AM
So you're blaming the president, when the entire world is at a stand still over Europe?

/forums/images/%%GRAEMLIN_URL%%/crazy.gif

Sev
06-13-2012, 10:37 AM
He is the man that would be king.

According to some America caused the problem and Obama promised to fix it.

Sooooooooooooooooooooooooooo. /forums/images/%%GRAEMLIN_URL%%/smile.gif

Gayle in MD
06-13-2012, 10:59 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sev</div><div class="ubbcode-body">He is the man that would be king.

According to some America caused the problem and Obama promised to fix it.

Sooooooooooooooooooooooooooo. /forums/images/%%GRAEMLIN_URL%%/smile.gif </div></div>

That's your version friend. Everything I read suggest most Americans blame Bush!

Even your own "Kingdom Come" Rasmucous polling shows more voters trust Bill Clinton more than Romney OR the president on the economy, and Clinton's policies are far closer to the president's than to Romneys!
/forums/images/%%GRAEMLIN_URL%%/wink.gif
G.

Sev
06-13-2012, 12:02 PM
2 more points and its 50/50.

4 years are coming up and that is a long time span economically.
They can blame Bush.
But they also see Obama cant get it done.

Empty wallets give weight at the voting booth.

Gayle in MD
06-13-2012, 01:00 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sev</div><div class="ubbcode-body">2 more points and its 50/50.

4 years are coming up and that is a long time span economically.
They can blame Bush.
But they also see Obama cant get it done.

Empty wallets give weight at the voting booth. </div></div>

They can also see who blocked the progress! Who refused to compromise. Who made the big switch from The deficits don't matter, while spending, warring, cutting taxes and borrowing all the way, paying for nothing.

This is the Great Bush Recession, and NO ONE, absolutely no economists expected a fast job recovery, they all said the same thing, it would be the slowest recovery ever, IF the new president could avoid the Bush Depression.

From the start it was labled the worst legacy ever inherited by any President, except for maybe Roosevelt.

G.

Sev
06-13-2012, 03:28 PM
Its not going to matter.
The people dont vote for a powerless leader. They vote for a person they believe can lead.
That Obama cant or is unwilling to work with the opposition and at time people in his own party generates a feeling that he is an ineffective leader.
4 years is a long time for people to tolerate soup kitchen America.

cushioncrawler
06-13-2012, 05:02 PM
Me myself i beleev in job-creation. Man kan create jobs, from nothing, az prophesized by St Keynes.

Job-evolution iz krappynomix -- superstitious dogma.
A non-prooven theory that good strong jobs will grow naturally if big-gov gets out of the way.

But krappy evolution-theory iz taught in every skool and university in theusofa.
Job-creation-theory aint taught nowhere.
mac.