Buy Less but Pay Lots More, and Get a Misleading Rise in Sales

[flashl]

Source: NY Times

FACED with tightening credit and a slowing economy, America’s consumers are being forced to scale back their purchases, but high prices of necessities are keeping their overall purchases rising at a reasonably strong rate.

...

In total, retail sales are running more than 4 percent over the level of a year ago, an increase that is above the overall inflation rate and much stronger than the sales were when the last recession began in early 2001.

But the overall change is misleading. One reason for its strength is that prices of necessities are up sharply over the past year, meaning that those items consume more and more of the household budget, leaving less for other things.

Over all, Americans are spending about 13 percent more on food and energy now than a year ago. The figures, as are all the figures shown in the charts accompanying this article, are based on three-month moving averages of seasonally adjusted figures, and compare this year with last year.

Retail Sales Stabilize . . . but More Goes to Necessities as Optional Areas Weaken

Read more: http://www.nytimes.com/2008/02/16/business/16charts.html?_r=2&ref=business&oref=slogin&oref=slogin

[Nay]

1. This isn't a rise in sales, per se, but simply inflation. How all these

headlines can be about a 'rise in sales' is beyond me -- if the cost of stuff rises dramatically, ppl aren't buying more! They may even be buying less, so this raw figure means nothing as far as consumer confidence. It really is only an indicator of inflation.

[flashl]

2. You are so on target. nt

[UpInArms]

3. The biggest cause of that increase is gasoline

The biggest cause of that increase is gasoline, of course. Americans are spending 22 percent more now at gasoline stations than they did a year ago. Food costs are up nearly 6 percent, a smaller amount but still a drain on budgets.

and where do these dollars end up?

oh, that's right - the Saudis!

and weren't 15 of the 9/11 suicide airplane riders from Saudi?

but let's not talk about that

and didn't Bandar Bush threaten more terrorist attacks if Britain didn't quit investigating his bribery payoffs?

but let's not talk about that, either.

well, that's okay - 'cause the Pukes are big on "security" and spending trillions without giving any security or end product - it all gets to be blown up on somebody else's turf and you get to pay for the dead and dying and the cost of gasoline goes up and up and up.

this all just makes me :puke:

[Lorien]

4. 13% more?

more like 30% more at the grocery chains down here, and rising steadily every week!