Weekend Economists Visit Borinquen, La Isla del Encanto May 15-17, 2015

[Demeter]

10. Consumer caution keeps retail sales flat in April

http://www.latimes.com/business/la-fi-retail-sales-april-20150514-story.html

S. consumers kept their money in their wallets in April, stalling retail sales despite warmer weather and the Easter holiday, which traditionally give stores a spring boost.

Retail sales were flat last month compared with March, the Commerce Department said Wednesday. The tally ticked up 0.1% without motor vehicle and parts spending, which tends to be volatile.

Analysts said shoppers continue to be wary of spending, which led to a string of lackluster months in winter before the slight climb in retail sales last month.

"Clearly consumers are not about to embark on a spending spree," said Sung Won Sohn, an economist at Cal State Channel Islands. "Consumers' caution is supported by less spending on discretionary items, from electronics to furniture."

Although some experts had predicted pent-up demand would push shoppers into stores once the weather thawed, many consumers opted to pay down debt or sock away their savings from cheaper gasoline prices. And now that fuel prices have rebounded, shoppers have even less cash to splurge on trips to the mall....

FUNNY HOW THAT WORKS