US Retail Sales Probably Slumped in April Amid Housing Slump, Job Losses

[marmar]

from Bloomberg:



Retail Sales Probably Dropped in April: U.S. Economy Preview

By Bob Willis

May 11 (Bloomberg) -- Sales at U.S. retailers probably fell in April as the biggest housing slump in a quarter century, record gasoline prices and the loss of jobs took their toll, economists said before reports this week.

Purchases fell 0.2 percent, following a 0.2 percent gain the prior month, according to the median estimate in a Bloomberg survey before the Commerce Department's May 13 report. Other reports may show housing starts fell to a 17-year low and rising food and fuel prices continued to push up the cost of living.

Plummeting property values are eroding household wealth just as Americans have to ante up a bigger share of their paychecks to fill gas tanks and feed their families. Concern over inflation may cause the Federal Reserve to keep interest rates unchanged in coming months, even as the threat of a recession still looms.

``Consumer spending has already noticeably downshifted,'' said Joe LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York. ``This should keep overall economic activity sub-par.''

Expensive items like automobiles saw the biggest drop in demand last month. Cars and light trucks sold at a 14.4 million annual pace in April, the fewest in almost a decade.

Retail sales excluding automobiles increased 0.2 percent after a 0.1 percent rise in February, according to the Bloomberg survey median. An increase in spending at service stations, reflecting the jump in gasoline prices, probably inflated the figure, economists said.

Spending to Slow

Consumer spending may grow at an annual rate of 0.5 percent this quarter, down from a 1 percent pace in the first three months of 2008, according to the median estimate of economists surveyed by Bloomberg News from May 2 to May 8. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aMnfcPhbke3w&refer=home

[SpiralHawk]

1. "We fought 9/11 with shopping, and we can fight sales slumps by...

bombing Eye-raq into the Stone Age. That's republicon strategery. Smirk."

- Commander AWOL

[Snarkoleptic]

2. Funny how the boooosh administration cooks the books...

publishing and promoting a .6% (annualized) growth figure for the first quarter.
This was done by using a ridiculous low-ball inflation figure of 2.4% (annualized).
They will adjust the figure later, but are loathe to admit we're in a recession.
It's comical watching how these clowns behave during an election year.

[24HRrnr]

4. If we're in a recession

you can't prove it by my business. I'm up 18% ytd and expect to be up 30% by the end of the year.

And I'm in the real estate sector providing services to buyers and sellers. And I drive alot (but in a very efficient for-its-class vehicle).

And high gas prices are good as they encourage conserving fossil fuels.

[lib2DaBone]

3. Retail Sales Probably fell..

but we will never know for sure, because the Bush Govt is LYING their ass off about every thing.