Who believes THIS? Retail sales post strong gain, led by autos

[Horse with no Name]

:eyes: Yeah, okay. We are to believe that people bought more cars than clothes?

>>>Snip
In other news, the Labor Department reported that wholesale prices jumped by 1.1 percent in September, pushed higher by gains in food and energy costs. Excluding those volatile categories, wholesale prices were up by a moderate 0.1 percent.
(so they factor out what makes the prices higher?)
>>>snip
The government data did show weakness at department stores and specialty clothing shops, where unusually warm weather dampened demand for fall clothing.
(people always buy fall clothing before it gets cold. Got any swampland you want to unload?)
>>>snip
Sales at gasoline stations also rose strongly in September, up 2 percent following a 2.6 percent drop in August. However, this increase primarily reflected the fact that pump prices were rising last month after having declined the previous month.
(Did sales rise or were the prices just higher?)
>>>snip
The strength in retail sales should ease concerns that the worst slump in housing in 16 years and this summer’s financial market turmoil could push the country into a recession.
(Fuzzy math makes my head hurt!)

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/101307dnbusretail.153250.html

[babylonsister]

1. From yesterday:

who are they trying to fool, and why?


4th UPDATE: September Retail Sales Weakest In 3 Years
Dow Jones
October 11, 2007: 10:08 AM EST

(Recasts lede, adds data from Thomson Financial in fourth and 15th paragraphs)

DOW JONES NEWSWIRES

September same-store sales were much weaker than expected, growing at their slowest pace in three years and prompting a number of retailers - including industry heavyweights Target Corp. (TGT) and J.C. Penney Co. (JCP) - to cut earnings expectations.

But Wal-Mart Stores Inc. (WMT) raised its fiscal third-quarter earnings outlook despite reporting same-store sales growth at the lower end of its forecast.

Economic conditions and concerns have been a source of trouble, and so has last month's abnormal warmth across large swaths of the country. In addition, many retailers had strong sales gains in September 2006.

The Thomson Financial Same Store Sales Index rose 1.4% in September, below the estimated 2.1% increase and last year's 4.2% growth. That is the lowest figure for the index since August 2004's 1.2% gain. Excluding Wal-Mart, the index still climbed just 1.4%, versus growth expectations of 2.2% and the prior year's 6.3% increase.

A warning by Target - which has been one of retail's stronger performers - two weeks ago didn't helped perceptions. The company slashed its September sales- growth outlook by more than half, blaming fewer-than-expected customers.

more...

http://money.cnn.com/news/newsfeeds/articles/djf500/200710111008DOWJONESDJONLINE000743_FORTUNE5.htm

[Horse with no Name]

3. Holiday season coming up

they want to fool people into shopping.
Our economy is falsely propped up now. It won't take much to topple it. People have to keep spending. Kind of like floating checks...

[Richard Steele]

2. Pfft. Their lies are built on so many other lies.

It's becoming hard to tell whether any given "report"
is an Onion™ article or not.

[Horse with no Name]

4. unreal isn't it?

lies, lies and more lies.

[Bitwit1234]

5. CNN is hyping the fact

that bush's tax cuts are helping dropping the national debt. And it is helping the economy. Guess since the people's homes have been foreclosed on they have a little bit more money to buy CARS. Probably where they and their family will have to live.

Who in the hell do these people think will believe all their crap.

[Jim__]

9. ummmmm, has anyone told CNN that the national debt is increasing?

And, yes, that fact is connected with bush's tax cuts.

[slackmaster]

6. This happens every few years regardless of the state of the economy

Peoples' cars wear out and need to be replaced.

[Horse with no Name]

7. or else they are replacing their bohemoth SUV's

with smaller cars and crossovers.

[slackmaster]

8. Yes, absolutely

I know people who have done that.

[ProfessorGAC]

10. Probably True

But, if the cycle is tight it means a good economy, generally speaking. Because a car can wear out in 12 years, the cycle around that time frame is pretty predictable. But, if car sales boom every three, it usually means that job security is high, real wages are strong, prices are in check, and growth is strong from the macro to the micro.

In this case, i'd suspect it's more your idea than the vehicle boom we saw in the 90's.
The Professor