Posted on 02/14/2014 7:12:35 AM PST by Kaslin
In a rare, back-to-back performance, retail sales in the US fell for the second month after a downward revision put December sales into the red.
Blame the Weather
In a blame the weather tactic Reuters reports Retail Demand a Bit Cooler.
While the two straight months of declining sales most likely reflected frigid temperatures, there were also signs of general weakness creeping in as online sales also fell.
Stripping out automobiles, gasoline, building materials and food services, so-called core sales fell 0.3 percent. Core sales for December were revised to only a 0.3 percent rise from a previously reported 0.7 percent advance. November's core sales figure was also revised down.
Core sales correspond most closely with the consumer spending component of gross domestic product.
The downward revisions to November and December core sales suggest that fourth-quarter consumer spending and economic growth were not as strong as initially thought.
GDP Estimates
(Excerpt) Read more at finance.townhall.com ...
You make an interesting point on food packaging. Notice the new cereal boxes? They are a little taller and skinny. The proportions of lots of other goods has shrunk.
I am not sure if this is accounted for in the inflation estimates that are made by the government.
It is the weather, people are holding back to pay their energy bills. My electric/Nat Gas bill was over $400.00 last month.
“Hard to blame the weather when online sales also dropped...”
I didn’t order as much from Amazon because it was too cold to open the front door and pick up the package...
Yup, and obviously the real reason why consumer spending is down is because so damn many people are working so many longer hours that they just don't have the time to go shopping or even put the money in the bank.
Thanks! We've had a blast this week, not having the kids to keep up with.......just doing what WE wanted to do.
Just got back from Magic Kingdom for Valentine's Day. The percentage of non-English speakers was much higher, probably 90% or more. We felt like we were in the Tower of Babel.
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