Source:
Yahoo News, RuetersRetail Sales Tumble in February
http://news.yahoo.com/s/nm/20080312/bs_nm/usa_economy_spending_dcNEW YORK (Reuters) - Retail sales fell at the fastest pace in at least five years and could tip an already fragile economy into recession, according to a private report released on Wednesday.
Retail sales tumbled 1.1 percent last month, compared with a 0.2 percent gain in January, said SpendingPulse, the retail data service of MasterCard Advisors, an arm of MasterCard Worldwide (MA.N). The report excludes auto sales.
"It's definitely the biggest drop in our history," said Kamalesh Rao, director of economic research at MasterCard Advisors. SpendingPulse's retail data series started in 2003.
The drop in retail sales may be a signal that consumer spending, which accounts for more than two-thirds of U.S. economic activity, has finally buckled under the weight of a housing bust, a weakening job market and soaring food and energy prices.
"This is reflecting what is happening in the labor market. We have been seeing a souring in spending in the past couple of months," he said.
On Friday, the government reported net job loss for a second straight month in February, which surprised economists and raised worries that the United States may be in a recession.
In February, consumers cut back on nearly all types of items. Even the few bright retail areas which had posted solid gains such as gasoline, groceries and electronics faltered, according to SpendingPulse.
SpendingPulse's "core" retail gauge declined 1.0 percent in February, compared with January, when sales were unchanged.
Core sales exclude autos, gasoline and building materials, which can swing sharply from month to month.
The SpendingPulse data are derived from the aggregate sales in the MasterCard U.S. payment network, coupled with estimates on all other payment methods including cash and check.
The government releases its retail sales report for February on Thursday. Sales excluding autos are expected to rise 0.2 percent, according to a Reuters poll of economists.
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http://news.yahoo.com/s/nm/20080312/bs_nm/usa_economy_spending_dc
Very bad news. It means not only are we in a recession, but it is going to get worse. If sales continue to decline, then more and more jobs will be lost, not only in retail, but in distribution and what is left of manufacturing here. Note this is just the beginning, not the middle or the end
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