U.S. retail sales fall for 3rd straight month

[marmar]

from the LA Times:



Washington —

Retail sales fell in June for the third straight month, knocking down economic growth projections for the second quarter and dimming the outlook for hiring in the near term.

The 0.5% drop from May was broad-based; consumers pulled back on spending for cars, electronics, furniture, building materials and other goods, the Commerce Department reported Monday.

The report surprised analysts, who were expecting a small increase in retail sales after two prior months of declines. It was the first time since the fall of 2008, when the recession was in full bloom, that retail sales fell three consecutive months.

Consumer spending, which accounts for about 70% of the American economy, has weakened amid persistent worries about Europe's debt crisis, slumping job growth at home and uncertainties about taxes and fiscal spending cuts. ................(more)

The complete piece is at: http://www.latimes.com/business/money/la-fi-mo-retail-sales-20120716,0,6550178.story

[DrewFlorida]

1. Retail sales for April, May, June are up 4.7% over the same period of 2011

Although sales have fallen for 3 straight months, they are still up from the second quarter of 2011.



http://www.dailyfinance.com/2012/07/16/u-s-economy-appears-weaker-as-retail-sales-slump/

[girl gone mad]

2. April -0.5%, May -0.2%, June -0.5%

No biggie. it's not like 70% of our economy is related to consumer spending and we are already struggling to create jobs or anything.

[DrewFlorida]

3. The numbers you posted are relative to the month before.

I posted the numbers relative to the same period last year, +4.7%.
The point is, the small reduction in retail sales over the past 3 months is not as bad as it seems when you understand that they are much better than the same period last year. It is not uncommon for retail sales to fall during the summer months.

[Po_d Mainiac]

4. let me fix that for you

http://www.briefing.com/Investor/Calendars/Economic/Releases/retail.htm

[DrewFlorida]

5. This should make the overall picture more clear!

http://ycharts.com/indicators/retail_sales

[girl gone mad]

6. Adjusted for inflation and population growth, they are still well below 2008 levels.

Those who are interested in good analysis can find it here:

http://advisorperspectives.com/dshort/updates/Retail-Sales-in-Review.php

[DrewFlorida]

7. Your statement doesn't reflect the graph you posted.

The graph you posted which shows retail sales adjusted for inflation, shows the most recent numbers equal with 2008, not well below 2008 levels.

[girl gone mad]

8. Remedial graph reading 101:

The blue line is currently well below where it was in at the start of the recession in 2008 (the shaded grey bar on the right).

~$176 billion is less than ~$186 billion.

[DrewFlorida]

9. My appology.

I see which chart you were pointing to now, I was looking at the chart above this one which showed adjustment for inflation and population growth separately.

I don't appreciate your sarcastic attitude, that's just rude.

[mother earth]

10. Deflation, the coming attraction? nt