Post-"stimulus" reality beginning to set in on the economy

[marmar]

from Bloomberg:



U.S. Retail Sales Fall for First Time in Five Months (Update2)

By Bob Willis

Aug. 13 (Bloomberg) -- Sales at U.S. retailers dropped in July for the first time in five months as record gasoline prices and tighter credit reduced automobile purchases.

The 0.1 percent drop followed a 0.3 percent gain the prior month that was larger than previously reported, the Commerce Department said today in Washington. Sales excluding automobiles rose 0.4 percent, less than anticipated.

The sales drop came even as the Treasury distributed tax rebates as part of the government's fiscal stimulus plan. Consumer spending, which accounts for more than two-thirds of the economy, is likely to keep fading, hurt by rising unemployment, falling property values and elevated fuel costs.

``With the tax-rebate effects dissipating and the labor market weakening, we should see consumer spending slow through the remainder of the year,'' said Dana Saporta, an economist at Dresdner Kleinwort in New York, which correctly forecast sales excluding autos.

The Labor Department reported separately that prices of imported goods rose 1.7 percent in July from the previous month, after a 2.9 percent increase in June.

Treasuries were little changed after the reports, with benchmark 10-year notes yielding 3.89 percent at 9:21 a.m. in New York, from 3.90 percent late yesterday.

Retail sales excluding gasoline fell 0.2 percent, the Commerce Department said. ......(more)

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

[zbdent]

1. luckily for the corporations ...

they didn't pay any taxes on their profits ...