U.S. Retail Sales Unexpectedly Declined in December

[marmar]

from Bloomberg:



U.S. Retail Sales Unexpectedly Declined in December (Update2)

By Bob Willis

Jan. 15 (Bloomberg) -- Sales at U.S. retailers unexpectedly fell in December, capping the weakest year since 2002.

Sales dropped 0.4 percent, the first decline since June, following a revised 1 percent gain in November, the Commerce Department said today in Washington. Purchases excluding automobiles also decreased 0.4 percent.

Treasury notes rose and stock-index futures dropped as the figures underscored Federal Reserve Chairman Ben S. Bernanke's concern that risks to growth are intensifying. A sustained slump in consumer spending brought on by falling property values and rising unemployment would mean the end of the six-year expansion, economists say.

``Consumer spending slowed down pretty dramatically'' in the fourth quarter, said Brian Bethune, director of financial economics at Global Insight Inc. in Lexington, Massachusetts, who correctly forecast the drop in sales. ``We are kind of flying very close to a stall speed.''

Economists forecast retail sales would be unchanged, according to the median of 74 estimates. Projections ranged from a decline of 0.8 percent to a gain of 0.5 percent.

Yields on benchmark 10-year notes dropped to 3.72 percent at 8:55 a.m. in New York, from 3.77 percent late yesterday. Futures contracts on the Standard & Poor's 500 stock index expiring in March declined 1.1 percent to 1,404.40. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aVzW9CqcO2Yg&refer=home

[ixion]

1. unexpectedly

:eyes:

[blondeatlast]

7. Actually, no. Sales traditionally rise markedly in December and retailers count on it to

make yearly revenues.

This is VERY bad news and means cutbacks and layoffs (though they won't say it here).

[ixion]

9. it was only unexpected by pundits...we're in a recession, and the cost of living is skyrocketing

people are, by and large, broke. that means they've got less money to dump at best buy. It's pretty simple math.

[blondeatlast]

12. True that. the pundits haven't ever dipped their big toe in the reality pool but think

that saying it they can make it so.

[lildreamer316]

2. Unexpectedly? No, not so much.

Idiots...
Ah well. Vive la Recession! (just being crazy, there).
Thanks for the post..

[Lint Head]

3. Baaaaaaaaaaaaah!

Bush stole Christmas. BOOOOOOOOOOOOOOOOOO HOOOOOOOOOOOOOOOOOOO! :dem;

[Sanity Claws]

4. Decline in December

That sounds pretty dramatic because sales usually increase before Christmas.

[liberal N proud]

5. They obviously have not been paying attention

Inflation coupled with recession on top of a mortgage crisis and they expected people to shop anyway.

I know of a couple of families that if it were not for friends their kids would not have had Christmas.

These people living and working in the ivory towers just don't get it.

[Subdivisions]

6. Unexpectedly? Sheesh. The MSM could learn a little comig to DU. n/t

[BlueJazz]

11. Yep..I was thinking the same thing. Just about every user at DU could have....

..told them the state of the economy was going to "Bite the Big One" :)

[snappyturtle]

8. Bloomberg is out of the loop! Why didn't they ask us? nt

[Sugar Smack]

10. Unexpected.

OK.

[gratuitous]

13. Clearly this calls for . . .

Another round of tax cuts for the overrich. It's bound to work someday, doncha think? I mean, Unka Dick and Poppy need an additional quarter million dollars they'd never even notice.

[Elspeth]

14. This is the REAL War on Christmas. Don't spend!

...