Retail Sales in U.S. Unexpectedly Rose in March on Jump in Gasoline Sales

[Purveyor]

Source: Bloomberg News

April 14 (Bloomberg) -- Retail sales in the U.S. rose in March, reflecting increases in receipts at service stations as gasoline prices jumped.

Purchases rose 0.2 percent last month after a 0.4 percent decline in February, the Commerce Department said. The median forecast of economists surveyed by Bloomberg News projected no change. Purchases excluding gasoline were unchanged last month after falling 0.3 percent.

Spending, which accounts for more than two-thirds of the economy, is waning as consumers pay well over $3 a gallon for gasoline just as their jobs are in jeopardy and their homes lose value. Investors are betting the Federal Reserve will need to lower interest rates again to shore up confidence.

``Spending is pretty sluggish,'' said Kevin Logan, senior market economist at Dresdner Kleinwort in New York, who correctly forecast the sales figure less autos. ``If you're getting an inflationary increase in gasoline and food, that would mask the true weakness in consumer spending. This is consistent with recessionary conditions.''

--
``Gas essentially is accounting for the whole increase'' in retail sales, Jonathan Basile, an economist at Credit Suisse Holdings Inc. in New York, said before the report. ``Consumers haven't been this cautious in a very long time and that is likely to translate into a soft profile for consumer spending.''

The housing slump was also apparent in the figures. Sales of furniture, electronics and appliances, and building materials all dropped in March.


Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aGV74CnL6F7Y&refer=us

[no_hypocrisy]

1. "unexpectedly" . . . .

[aquart]

9. Yeah. That was the word that got me, too.

[kestrel91316]

2. Everything is normal. Just peachy. Americans' spending on

retail purchases is unchanged.

It's just ALL going to gas. Heck, I KNOW it's not going to take care of "Kitty" and "Fluffy"......

[Purveyor]

3. Well we certainly know where the 'stimulus $$$' will end up. "In the tank..." eom

[Javaman]

5. Well, don't you see, this is part of morons* grand plan to get us back

on our feet!!

first bankrupt the system.

two destroy the housing sector

three kill the credit lenders

four make it so we don't produce anything anymore

five drive up the price of oil

Then...

SIX come to the "rescue" by claiming that everything is fine when gas is the only thing we have to buy.

smooth sailing from here on out!!

[Winterblues]

4. Remember "sales" are counted in dollars and not volume.

They didn't say more gasoline had been sold only more "sales". When you raise the price on something the dollar amount on sales will go up..duhhh.."Sales" are up because prices are up and not because more gasoline was sold..

[louis-t]

8. My first thought-EXACTLY

Headline is misleading. Volume ISN'T up, only revenue.

edit: And oh, by the way, "unexpectedly" to whom?

[napi21]

6. WAIT A MINUTE!!!!! They DON''T include the price increase of

gasoline when calculating inflation or cost of living but they INCLUDE IT when calculating retail sales??????

DAMN! Talk about manipulating the numbers!

[onehandle]

7. So our paycheck is going to pay Bush's oil buddies and buying nothing else for our families.

Mission Accomplished.

[Zorra]

10. However, these figures are erroneous, and will be revised downward in two months.

Like they always are.

[Eugene]

11. American consumers showing signs of strain

Source: Reuters

American consumers showing signs of strain
Mon Apr 14, 2008 4:30pm EDT

NEW YORK (Reuters) - While U.S. consumers may have
spent slightly more than expected last month, it was
because they paid more for necessities like gasoline
and food, and not because they bought more
discretionary items, analysts said on Monday.

The Commerce Department said U.S. retail sales were up
0.2 percent in March, slightly stronger than expected.

But Americans are not shopping the way they used to,
according to Bespoke Investment Group, a research
firm in Harrison, N.Y.

They're digging deeper into their wallets for the bare
necessities like gasoline, food and beverages, the
sectors showing the most growth in retail sales, it
said. That trend has been building over the last
several months,

"Unfortunately, growth in these sectors is primarily
due to inflation in food and energy prices," Bespoke's
Paul Hickey and Justin Walters said.

-snip-

Read more: http://www.reuters.com/article/newsOne/idUSN1437665620080414