Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
WASHINGTON (AP) -- Retail sales plunged in May by the largest amount in eight months as consumers slashed spending on everything from cars to clothing. The big drop raises new worries about the durability of the economic recovery.
Retail sales drop 1.2 percent in May - Yahoo! Finance (http://finance.yahoo.com/news/Retail-sales-drop-12-percent-apf-2718221856.html?x=0&.v=2 - broken link)
Oh but wait, didn't we here that the economy and sales were in the right direction. If this is the right direction, We're in big trouble! Obama just stays away from any news that is not news worthy, or good news. Sort of tells us the things he wants us to here. Hmmmmmmmmmmm what else can he be keeping from us all!
Nope - just too busy working on my house these days to waste a lot of time on this board.
Retail sales fell from the month before to be sure, but were still UP 6.9% from May of last year. Not only that, but consumer sentiment is at it's highest level in 2 1/2 years - which generally bodes well for UPCOMING consumer sales. All in all, not really bad news.
Ok folks..I'm coming here to tell you "I told you so". When the inventory numbers came out there was dancing in the streets because the increase was so good...hurray the economy is recovering.
Well I took a look into those numbers and posted on the inventories thread and said it was due to corporate increase..300% increase in non defense planes..machine parts, industrial and agricultural chemicals..stuff like that. The consumer inventory numbers were negative.
They didn't lie, but they didn't tell you the entire story. This report today just tells me that the numbers I'm looking at tell me the real story.
You have to learn to analyze for yourself and look BEHIND the numbers.
Jobs gains...but the majority is govt temp and BLS "created" jobs, not private sector jobs
Inventories gains...but the details indicate corporate and foreign activity, not consumer activity
Stock market gains...but the details indicate bank and institutional trading, not consumer activity
We're stagnant, that's where I think we are. While the government would like to think we're humming along, I think we're dragging bottom, not getting worse, but not getting better as fast as everyone would like.
Thats good that some people have hope. To bad that mood isnt turning into people going out buying in May.
Fact is retail sales are down.
Actually a big part of the retail sales drop in May was the natural fall-off in building materials after the end of the home buyers tax credit. It had spiked prior to the end of that, then fell back to more normal levels afterwards. Of the remaining decrease in sales, a big part was in gasoline - which reflected the big drop in gas prices last month (from $2.94/gal on May 1st down to $2.73 on May 30th). People didn't buy less gas, they just got MORE gas for their money so retail sales there showed a drop in retail sales dollars - NOT a decrease in economic activity. Core retail sales actually ROSE again last month - and (as I said) consumer sentiment is still rising.
However, core retail sales—which exclude autos, gasoline and building materials—rose 0.1 percent after falling 0.2 percent in April. Core sales correspond most closely with the consumer spending component of the government's gross domestic product report.
Ok folks..I'm coming here to tell you "I told you so". When the inventory numbers came out there was dancing in the streets because the increase was so good...hurray the economy is recovering.
Well I took a look into those numbers and posted on the inventories thread and said it was due to corporate increase..300% increase in non defense planes..machine parts, industrial and agricultural chemicals..stuff like that. The consumer inventory numbers were negative.
They didn't lie, but they didn't tell you the entire story. This report today just tells me that the numbers I'm looking at tell me the real story.
You have to learn to analyze for yourself and look BEHIND the numbers.
Jobs gains...but the majority is govt temp and BLS "created" jobs, not private sector jobs
Inventories gains...but the details indicate corporate and foreign activity, not consumer activity
Stock market gains...but the details indicate bank and institutional trading, not consumer activity
We're stagnant, that's where I think we are. While the government would like to think we're humming along, I think we're dragging bottom, not getting worse, but not getting better as fast as everyone would like.
Well, as I said in a previous reply to one of your posts, a corporate-led recovery is STILL a recovery.
In regards to retail sales. Here's a chart of retail sales over the last few years. It does not include the latest (May numbers) - which of course showed a drop (due mostly to a drop off in building materials sales, car sales and gasoline (which was probably ENTIRELY due to lower prices)) but still the trend in retail sales is very very clear - they have rebounded considerably.
Just wait until the extended unemployment stops. And someday it will.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
