Posted on 09/14/2010 7:55:57 AM PDT by blam
Today's Inventory Data Just Demolished The Notion Sales Growth Sucks Right Now
Vincent Fernando, CFA
Sep. 14, 2010, 10:36 AM
Some skeptics of the recent economic recovery have blown-off rising corporate profits by blaming cost-cutting efforts and saying that sales growth has been nonexistent.
Well today's inventory data kills that idea. As shown below, on both a seasonally-adjusted and raw non-seasonally-adjusted basis, sales in July were 9.2% and 8.0% higher respectively.
Sales growth is indeed happening, and when the S&P 500 is at just 1,120 you can't ask for better than 8-9% growth, which is decent. Thus profits growth won't just be about cost-cutting when Q3 earnings come out.
[snip]
(Excerpt) Read more at businessinsider.com ...
Who posts this idiotic junk? Has the author talked to any of the 17.5 percent unemployed (including those who gave up looking for work) or does he only talk to labor union members subsidized by our tax dollars?
prospects for a Republican congress making people feel more optimistic about spending and investing!
It’s simply an indication. It has nothing to do with employment.
But don’t let this confuse any of the Chicken Littles out there portending complete doom. Carry on.
We’re sure as hell not seeing 8-9% growth in our sales. And I’ve got a news flash for this business insider: Inventory growth does not mean that sales are up.
Inventories were up and imports up because companies restocked. Not a trend.
Hopefully this means people will buy more of my apples and I can afford to buy the good vodka today!
The author must have some really unique way of calculating sales growth. Increases in the 8% - 9% range are almost unheard of. And he’s still talking about July. Market Watch says .4% retail sales growth in August:
http://www.marketwatch.com/story/us-retail-sales-rise-04-in-august-2010-09-14
“A chicken in every pot and a car in every garage”. I believe the Dems always attributed that to Herbert Hoover along with “Prosperity is just around the corner”. Of course, we didn’t have two trillion dollar PLUS deficits in two years at that time. I think we’ll see Chicken Little before your “chicken in every pot”.
Ah, but who is doing the buying?
The Obamas (and hangers-on)...while on vacation.
Since when are rising inventories a good thing? They signal inadequate demand.
Yes, they don’t explain why inventories are up. I’d like to know what the Inventory Turnover is.
Inventories are up only because retailers are getting ready for the Christmas cycle.
Any anaysis of growth must deduct government spending. Deduct that and we are in very much negative territory. Also, inventory numbers means nothing to sales.
The % gain over the previous year looks impressive except for one thing...July 2009 sales were terrible.
Sales are still lower than 2008 and 2007.
http://www.census.gov/retail/marts/www/download/text/adv44000.txt
The month to month gain was less than 1%. This is just more bullish spin....
You nasty old bubble buster!!!
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