Retail Sales in U.S. Unexpectedly Fall on Concern Over Job Losses, Income

[marmar]

Retail Sales in U.S. Unexpectedly Fell as Job Losses Mounted
By Timothy R. Homan


Aug. 13 (Bloomberg) -- Sales at U.S. retailers unexpectedly fell in July, the first decline in three months, as concern over jobs and stagnant incomes caused consumers to cut back on other items after taking advantage of the cash-for-clunkers program.

The 0.1 percent decrease followed a revised 0.8 percent gain in June that was larger than previously estimated, Commerce Department figures showed today in Washington. Purchases excluding automobiles fell 0.6 percent, also more than anticipated.

Retailers such as Wal-Mart Stores Inc. and Macy's Inc. are cutting costs and inventories to bolster profits as job losses and falling home values prompt Americans to cut back on non- essential items. The report underscores the views of Federal Reserve policy makers, who said yesterday that spending remains ``constrained,'' even as the economy ``is leveling out.''

``Consumers continued to maintain a tight hold on their wallets, worried about rising unemployment, falling home prices, and tight credit,'' Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. ``Overall economic activity will not fully revive until consumer spending rebounds.''

Retail sales were projected to rise 0.8 percent after an initially reported 0.6 percent gain in June, according to the median estimate of 76 economists in a Bloomberg News survey. Forecasts ranged from a decline of 0.9 percent to a gain of 2 percent. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aVpgyu9AsFl4

[Craftsman]

1. No new decent paying jobs = no recovery.

And we are not in recovery.

[TexasObserver]

3. Yes, we are in recovery. New jobs are a lagging indicator.

A recovery isn't a moment in time when everything is fine, any more than healing from a bad injury occurs in a moment.

It's going to be six months to a year before we see real progress in jobs.

[Craftsman]

5. Until then for most of us there is not recovery

My and I figure most American's leading economic indicator is their pay checks.

[TexasObserver]

8. I know, and that is very unfortunate.

[Progressive_In_NC]

6. But with so many out of work, employers will cut wages by 20-30% and that will stall recovery. NT

[TexasObserver]

9. The recovery is aided by lost jobs and cut wages, unfortunately.

The improved profitability we are seeing in some sectors is due primarily to cutbacks in employees. It's somewhat illusory.

The "recovery" is just that. It's a long, drawn out process of hitting bottom and slowly making our way back. Like the period after crops are harvested, there is a long period before new crops will be planted and new crops will emerge.

It's hardest on those least able to weather it - those who live paycheck to paycheck working at ordinary jobs. When demand for good services drops off, jobs are cut, and that is why we're seeing such high unemployment. It's the working man and woman who takes the brunt of the recession.

[Pirate Smile]

2. People pulled back and got kind of scared in July so I'm not surprised by the July numbers.

[hatrack]

4. "Unexpectedly"? Puh-leeze.

What the hell did they expect?

[JVS]

7. This is why the claim that jobs are a lagging indicator misses something big.

Jobs and the income they provide are also an input into the future of the economy.

[earth mom]

10. Ain't nothing unexpected about it unless you are rich and oblivious.

:eyes: