Worst Retail Sales Showing in Six Months in Slow Start to Third Quarter

[Purveyor]

Source: Bloomberg

By Lorraine Woellert Aug 13, 2014 9:34 AM ET

Retail sales were little changed in July, the worst performance in six months, as car demand slowed and tepid wage growth restrained U.S. consumers.

The slowdown in purchases followed a 0.2 percent advance in June, the Commerce Department reported today in Washington. The median forecast of 82 economists surveyed by Bloomberg called for a 0.2 percent gain. Excluding (RSTAXMOM) cars, sales rose 0.1 percent.

Job growth has yet to stoke the type of wage gains needed to boost household purchases, a sign the economic expansion will probably not sustain the second-quarter pickup into the end of the year. Retailers such as Macy’s Inc. (M) are relying on promotions and discounts to entice customers, whose spending accounts for about 70 percent of the economy.

“There’s no sign of momentum or enthusiasm out of the consumer right now,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut, who accurately forecast today’s sales figure. “Income growth continues to be so-so. Employment has picked up in recent months but you’re not seeing the growth in hours worked that would generate big increases in paychecks. I don’t think people have the wherewithal, not to mention the inclination, to ramp it up.”

more...

http://www.bloomberg.com/news/2014-08-13/retail-sales-little-changed-in-slow-start-to-u-s-third-quarter.html

Read more: http://www.bloomberg.com/news/2014-08-13/retail-sales-little-changed-in-slow-start-to-u-s-third-quarter.html

[Kelvin Mace]

1. Seriously?

They are gauging economic growth by looking at a single month in a single quarter over a six month period?

[onehandle]

2. Raise the minimum wage and pass a massive jobs program and watch the economy surge.

But that would make the black guy look good, so no fucking way.

[cstanleytech]

5. We need more than just a minimum wage increase we need companies to give enough hours as well so

that people can earn enough money to atleast live on.
An example of what I am talking about is a new subway opened near me and when i asked they told me all their employees are full time however the catch is they earn only pennies about minimum wage and they are capped at 29 hours a week.

[Sherman A1]

6. 29 hours per week?

An interesting version of full time?

[cstanleytech]

7. Yup they consider 29 hours per week as full time. nt

[former9thward]

8. The ACA kicks in at 30 hours.

[Shadowflash]

3. My wife has been unemployed for 8 months.

My job pays the bills and such, so there is no issues about being able to live, but without the extra income, we don't buy anything that's not required.

[Purveyor]

4. Our store is having a great year but still holding out on expanding into

hardware.

Michigan is still all about autos and the industry will tank again but the question is when. I've read that industry experts (ha) think we have about 4-5 more years of good auto sales before a downturn.

[JCMach1]

9. Small business owner... July was one of the worst months we have had period...

Very very bad summer.

[hollowdweller]

10. Everybody's working but nobody is making any money.

Employers don't want to turn loose of any raises so consumers don't want to turn loose of any money.

In my state we are having teacher shortages and shortages of other workers because nobody wants to do the jobs for how much they demand of you vs pay.

Deflation will be around the corner.