Retail Sales in U.S. Jump 2.7%, Most in Three Years

[Purveyor]

Source: Bloomberg

Sept. 15 (Bloomberg) -- Sales at U.S. retailers surged in August by the most in three years, led by a jump in auto purchases as consumers took advantage of the government’s “cash-for-clunkers” program.

The 2.7 percent increase exceeded the median forecast of economists surveyed by Bloomberg News and followed a 0.2 percent drop in July, Commerce Department figures showed today in Washington. Purchases excluding automobiles climbed 1.1 percent, also more than anticipated.

Auto sales increased by the most in almost eight years, spurred by the Obama administration’s cash incentive to trade in older models for new, more fuel-efficient vehicles. The gain in spending was broad-based as 11 of 13 categories registered increases, easing concern that rising unemployment and a record loss of household wealth will cause Americans to retrench.

“There’s quite a bit of pent-up demand,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “At the moment, it looks like the consumer is buying goods besides autos. The outlook has brightened immeasurably.”

Treasuries declined and stock futures rose after the retail sales figures and a separate report showing that manufacturing in the New York region grew at the fastest pace in almost two years.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ax7.LgudHi3A

[imdjh]

1. ink

[CountAllVotes]

2. inflation

we are there already had anyone not noticed.

Now Ben, when in the hell are YOU going to raise the rates?

:mad:

:kick:

[Zynx]

7. I like to think I shop at normal places. I don't see inflation.

The only real exception to that is energy.

[CountAllVotes]

14. gasoline is $3.49 a gallon here

and prices have gone up on those tiny little packages of food that they claim have not changed in size.

Who does the shopping in your household?

Who pays the bills?

*sigh*

[Zynx]

15. I don't drive a car because I use mass transit.

I live alone, by the way.

Food prices are up versus, say, 2004 certainly. I know that much for a fact when I look at receipts from then and now. However, versus last year I would be constrained to say that. For general merchandise in stores, if anything, prices are down significantly. I've picked up very very cheap clothing.

[CountAllVotes]

16. there is no mass transit where I live

I am major screwed btw. My husband has gone blind and cannot drive anymore needless to say.

It costs $150.00 to take a taxi r/t from where I live to the hospital (no tip included!). :grr:

They say the reason for this is because of the price of gasoline. It is about 40 miles r/t from where I live to the hospital.

As for new clothes - not much left for any of them right now. I have noted that clothing seems to be a bit less in cost if you have the money for some.

:kick:

[tclambert]

3. Jay Leno's best joke last night was about Cash for Clunkers:

"You know the program where they're giving people money to trade in their old cars? I made five billion dollars."

[OwnedByFerrets]

4. Does it bother anyone else that the majority of these purchases

just put people MORE in debt?

Show me a rise in REAL manufacturing jobs and REAL manufacturing production and I will be much happier.

[Zynx]

10. Industrial production data comes out tomorrow.

9:15 Eastern Time if you are interested.

[rfranklin]

5. When you start from below zero it isn't hard to show big increases...

This is typical MSM lack of context. Retail sales are nowhere hear where they were a couple of years ago.

[Zynx]

8. True, but at the same time it's a lot better than dropping 2% a month.

That's where everyone on this board thought we would be six months ago when they were talking about later on this year. As it is, we have put together, in the last eight months, 5 months of growth for a cumulative increase of nearly 4%.

[ShortnFiery]

6. Bunk. eom

[Zynx]

9. ?

[ShortnFiery]

11. "Bunk" is a word from George Orwell's novel "1984", translates into "disinformation." eom

[Zynx]

12. I know, but are you suggesting that the number is false?

[ShortnFiery]

13. Let's just say that, like the Cash for Clunkers, it's money spent by those who are not hurting.

It's going to get a whole lot worse before it gets better ... plus I wouldn't put it past anyone, at this point, to PAD the numbers. :shrug: