Surprise slowdown in US retail sales

[Judi Lynn]

Source: Financial Times

Surprise slowdown in US retail sales
By Eoin Callan in Washington

Published: September 14 2007 14:44 | Last updated: September 14 2007 23:08

US retail sales slowed last month as concerns mounted about the economic impact of the downturn in the housing sector and turbulence in financial markets.

Purchases were weaker than expected as sales growth slowed to 0.3 per cent from 0.5 per cent, the commerce department said.

The surprise slowdown in sales added to fears that US households will curtail spending as house prices weaken and borrowing conditions tighten.

Stocks fell and bond yields slid as investors priced in a greater likelihood of aggressive interest rate cuts by the Federal Reserve, starting next week. The yield on the benchmark 10-year Treasury bond fell to 4.42 per cent from 4.47 per cent.



Read more: http://www.ft.com/cms/s/0/360a732a-62c8-11dc-b3ad-00007...

[Deja Q]

1. Just wait until January... the real surprise will be the result of Xmas sales...

Plus, the results of September and the initial 'back to school' figures haven't come back yet.

[knitter4democracy]

35. We'll be spending less this year.

Spent less on school supplies, too. I used coupons and sales for the kids' school clothes and got less (do a lot of laundry anyway, so no need for tons of stuff).

We've got the kids on a new stuff diet. No new stuff. They have enough crap, and until they get rid of a lot of it, they won't get more. Same for all of the holidays, and this year for Christmas, we'll be doing more for local families that don't have enough and less for our tree. We don't need more than a couple of boxes under the tree per kid, really. I'm tired of my kids wanting more and more.

[phantom power]

2. Not that big a surprise to anybody paying attention.

[annabanana]

4. SURE as hell no surprise to me...

When each trip to the grocery store creeps up another $10-20.. and the bags aren't any fuller than the week before... It's a fair bet that other purchases slip from the "need" to the "want" column.

[notadmblnd]

13. We took a ride up north today

it's north for us, We went to Pinconning Mi. to stock up on produce for the winter. 50lb. potatoes $4.99. 50lb. sweet onions $15.00. Giant heads of cabbage, broccoli and cauliflower for .99 cents All assortments of squash .25 cents a pound. We went to the cheese factory and and meat market. I spent about $200.00 total and the back of my Envoy was full of food. I'll only have to buy milk, eggs and sale items for a while. The money I save shopping like this will go to the gas tank I'm sure. Next year we're going to plant a bigger garden, we planted a small one this year just to see if we could do it. I'm thinking of asking my elderly neighbor if I can expand it into her yard (my son takes care of her grass already, so I don't think she'll mind. My son is also going to take a hunter safety class and learn to hunt with his grandfather. I'm convinced that we all should become more self sufficient because I think it's going to get worse before it gets better.

[peacebird]

28. we planted veggies this year, and started raising a small flock of chickens

for eggs. The chickens free range about the property eating bugs and seeds and reward us with three of the best tasting eggs each day! We also put up a greenhouse so I can extend the growing season. Trying to do the greenhouse with strictly passive solar for light and warmth... I'll post later this winter on how that's going.

I think we all need to grow more of our own food. It's healthier (more vitamins in fresh picked veggies) and tastier than store bought. I'm also trying to buy local for as much as I can - our chicken "meat" comes from an organic grower about two miles from my home.

(My own chickens will live out their natural lives even after they quit laying. I 'hired" them for eggs, but they have a nice "retirement plan" thrown in!)

[Preening Fop]

31. You can truly be considered, "A Good Egg...!!"

With a smile,
I am sending your comment to my sister
who is also an organic grower.

[knitter4democracy]

36. We do that, too.

There are some good potato farms by where my mom lives in the muck area by Kalamazoo/Plainwell. I'll be getting more potatoes for the basement pantry. We've also been shopping more at Horrocks, the cheaper market in town with great produce (as much local as they can get), and it gets busier every week, I swear.

[shanti]

16. sure you're right!

i was in safeway yesterday and was appalled at the 20-30% increase ACROSS THE BOARD of the items i purchased. i ended up leaving without buying everything i had intended to buy. prices are definitely higher!

[TommyO]

23. I was at my local Wegmans tonight and noticed the same thing

for many things that I regularly purchase, the hardest hit category was the proteins (I'm not vegan or vegetarian, and probably never will be).

[Lone_Star_Dem]

3. Surprise to whom?

Not to those of us on the consumer end, that's for sure.

Money's tight, the economy is teetering on the edge of a cliff and inflation has eliminated our spendable income.

I just love it when they act surprised when the consumer dare respond to the current economy.

[acmavm]

5. Well I guess the rich better get to spending. I mean, isn't that what bush**

always recommends for everything?

[aquart]

6. Surprise? To whom?

[Warpy]

7. Surprising to WHOM???

They've held wages down for decades, and now people can't leverage cheap debt against their houses. Fortunately, they're waking up to the fact that easy but expensive debt via plastic is a huge trap and they're cutting down on what they charge.

The result of low wages, inflation, lack of ability to leverage reasonably priced debt, and no hope for change in the foreseeable future is a buying strike.

You can't offshore the good paychecks, onshore the debt, and expect to have a healthy economy. Supply side economics don't work without equal attention to the demand side of the equation.

[madrchsod]

8. we have about 60-70% of our christmas shopping done...

everything is either garage/thrift shop or 75% off sales. we`ll buy a few new things,make some things, and the rest of the stuff is going to be food type gifts...

[Odin2005]

9. SUPRISE!?! Morans.

[valerief]

10. It's gonna be a red Xmas. The massive year-end layoffs will

prompt a big return of Xmas presents.

[Wcross]

11. Remember Gomer Pyle "Suprise,Suprise,Suprise".

Gee, we can no longer borrow on the equity of our homes to "pay off" credit card balances. How are we supposed to buy more crap if we have hit our credit limits? It's not fair!

[Systematic Chaos]

12. Kinda like how I'm surprised I don't wake up and find...

...that I've dropped a serious amount of weight overnight, or log onto the bank website and find a 6-digit balance?

Nope, couldn't POSSIBLY see this one coming!

[rodeodance]

14. food bills, gas bills , they add up--

[antigone382]

15. I work in retail and this is no surprise at all to me.

We're a new tiny gift and coffee shop with a strong focus on local and American-made goods (plus a few goodies picked up from the owner's travels around the world)...and right now things are NOT looking good. Hopefully we'll get enough of a pick-up from Christmas to keep us going. I've got a really good gig here and I DON'T want to lose it.

[TommyO]

24. It's too bad "here" is TN, I would stop by for some coffee at least.

[Arugula Latte]

17. No one could have predicted market chaos and a housing crash could hurt retail ...

[rockedthevoteinMA]

18. Surprise? WTF? I work in retail..........

Never have I seen it this bad. The boss is freaking out too - guess he hasn't watched the news, or picked up a paper.

Jeez - just look at the headlines! But, he's probably a Bush voter

[Cobalt Violet]

19. So when is retail going to pay more so people can spend more?

I won't hold my breath.

[Cobalt Violet]

20. So when is retail going to pay more so people can spend more?

I won't hold my breath.

[Mnemosyne]

26. That did need said twice! lol n/t

[whistle]

21. I'm not surprised, who has money to go shopping?

[feloneous cat]

22. Oh...I Sooooo surprised...

Next you'll be telling me that the U.S. isn't the world leader like it used to be...

[scarface2004]

25. bush suprised the earth isn't flat!

is about the same news!

[NMDemDist2]

27. oh good grief! who didn't see that coming?

amazing these 'experts' get the bucks they do for not knowing their @ss from a hole in the ground.

[MadHound]

29. Why do these so called experts find this to be a suprise?

Let's see, gas up, food up, mortages going up, people are doing their damnest just trying to hold it all together. Nothing left over for those precious knick-knacks that drive the consumer market. Hell, this set of numbers was evident to even the densest of us, why is a suprise to the "experts?"

Consumer spending is going to continue to plummet, and we could very well have a Christmas season that will actually be a contraction compared to the past few years. People are stretched to the limit and can't afford the shit anymore. And frankly that much balleyhooed cut in the prime all the "experts" are begging for? It's not going to make a damn bit of difference. If banks aren't lending, then people aren't spending, and with the credit crunch, there's going to be little or expansion, much more likely a contraction. Can you way depression?

[Preening Fop]

30. Oh Dear, No Lead Coated Toys for the lil Ragamuffins this X-Mas....!!

[Sukie1941]

32. January is month from hell for fixed income folks

My supplemental insurance premiums will go up yet again (and predicted each year) higher than the cost of living increase on my pension. Medicare premiums go up. Utility companies increase their monthly rates, and then there is gas and food.

My clothes have come from thrift shops for years. I am retired so what I wear isn't so important. Even pet food is expensive!

I pay for one tank of gas a month. I don't need anymore if I am careful.

[tom_paine]

33. Only a surprise to the fools who believe Bushie Lies

That, of course, happens to be almost everyone in the Cocktail Party Class. It is simply unthinable that the Busheis could lie like Nazis.

Not only is Hitler's Principle of the Big Lie alive, it may work better now, with all the force of 60 more year progress in pyshcology, PR, phiology, and advertising behind it.

Wow.

I am still stunned, and I have been watch the Rise of the Kinder and Gentler Nazis for closing in on a decade now.

[BulletproofLandshark]

34. No surprise to those of us who dwell in Reality

[Lugnut]

37. They're surprised?

I'm not. Food and gas prices have caused a lot of doing without in my house and I suspect in many others as well. The fact that they're surprised indicates how clueless some people are.