It was the Sequester!!! It was Easter!!! It was too cold!!! It was too much fiscal austerity!!!!
What we’ve got here is TOO MUCH BULLSHIT!!!
Wall Street, the MSM and your political hack representatives will try to spin our deteriorating economic calamity into gold, but report after report confirms that we are in recession and headed south. But, buy stocks anyway. Just because consumer spending accounts for 71% of GDP, why would a collapse in consumer spending have an impact on our economy? It takes a village of idiots to run this country.
Here is the link to the atrociously bad retail report:
Here are my observations, which will be SLIGHTLY different than the bullshit you will hear on CNBC or read on Marketwatch:
- Retail sales fell in March versus February by $2 billion, and shockingly January sales which had been reported as being higher, were revised lower. Your government drones doing their usual coverup.
- The increase over last year of 2.8% is less than the real inflation rate of 5%.
- Even auto sales dropped, despite 48% of sales from subprime loans and as long as 7 years.
- If there is a housing recovery how could furniture and electronics sales be flat with last year? I guess Blackrock isn’t buying furniture for their millions of rental units.
- How could Building Materials stores (Home Depot, Lowes) have flat sales if there is a housing recovery?
- General merchandise store (Wal-Mart, Target) sales fell month over month and year over year. This is with 5% inflation. The profits of department stores are going to plummet in the 1st quarter.
- Even internet sales were flat. They had been advancing at a 10% to 15% clip.
- Even with food inflation of 5% to 10%, grocery store sales declined.
- The fractional increase in restaurant and bar sales was due to inflation and people drowning their sorrows in alcohol.
This was a horrific retail report. The Obama tax increases, Obamacare premium increases, declining real wages for workers, and the continued QEing of the American middle class by Bernanke is why this is happening. It ain’t the fucking weather!!!
Retail sales post biggest drop in 9 months
Spending falls by 0.4% in March as most stores take a hit
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — Americans spent less at gasoline stations and most other stores in March, as retail sales posted the biggest decline in nine months.
The decline in sales — the biggest since last June — might be a sign that higher taxes and slower job creation are taking a bite out of the economy. A cold snap in March might also have limited sales for some retail items such as clothing.
Retail sales in the U.S. fell 0.4% last month after a revised 1.0% gain in February, the Commerce Department said Friday. That was below the MarketWatch forecast of a 0.1% decline.
Sales for January were also revised to show a 0.1% drop instead of a 0.2% increase, suggesting that first-quarter growth might not be as strong as forecast. The U.S. is estimated to have grown 3.0% in the first quarter, according to the latest MarketWatch estimate.
The drop in retail sales is the latest in a string of reports, including last week’s disappointing employment number for March, signaling the U.S. economy has cooled off again.
The “recent data suggest that the economy took a step backward in March after coming out of the gates reasonably strongly to start the year,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.
Sales fell the sharpest at gasoline stations, down 2.2% in the month, as the price at the pump declined. The average cost of regular gas fell from $3.72 a gallon to around $3.57 in March, according to government figures.
Falling sales at gas stations are a good thing for consumers because it gives them more to spend on other items aside from basic necessities. Yet Americans also reduced purchases at many other stores.
Sales fell a seasonally adjusted 0.6% at auto dealers, 1.6% at electronic and appliance stores, 1.2% at general-merchandise outlets and 1.1% at department stores.
Retailers that sell books, music, hobby items, personal-care goods also posted lower sales. Even spending at groceries tapered off.
Many economists had predicted sales might soften in the spring as consumers began to feel the pinch of higher taxes or move to rebuild a savings rate that plunged at the end of 2012. Reductions in federal spending via a law known as the sequester and a slower pace of hiring may have also weighed on consumer spending.
Retail sales account for about one-third of consumer spending, the main engine of the economy. They are a good proxy for how fast the U.S. is growing, though the data is prone to sharp revisions like what occurred in January.
A few retailers stood out in March. Spending jumped 0.9% at stores that sell home furnishings, a carryover from improving home sales. The housing market is finally rebounding from a long slump, and sales are expected to continue to rise.
Sales also rose at bars and restaurants, in somewhat of a surprise, as well as at Internet retailers, a category that has outperformed most others over the past decade.
Sales were essentially flat at apparel stores, perhaps because of a cold spell in March. That may have spurred shoppers to delay the purchase of new clothes for the spring, meaning there could be a snapback in April.
In February, the government revised the retail-sales increase to 1.0% from 1.1%