Reluctant To Splurge: U.S. Retail Sales Disappoint Again

[Purveyor]

American consumers are not behaving as economists predicted they would.



Retail sales unexpectedly barely budged in April following a revised 1.1 percent gain in March that was larger than previously estimated, Commerce Department figures showed Wednesday in Washington. Instead of spending the windfall from lower gasoline prices and rising employment, households are socking it away.

The inability to sustain a rebound in purchases casts doubts on how soon Federal Reserve policy makers will be able to raise interest rates. Central bankers need to be convinced that growth is gaining momentum before risking an increase in borrowing costs that could further slow the consumer spending that accounts for almost 70 percent of the economy.

“The economy needs to pick up steam for the Fed to be really satisfied that we’re leaving the weakness of the first quarter behind us,” said Guy Berger, an economist at RBS Securities Inc. in Stamford, Connecticut, who projected sales would be unchanged and is the top-ranked forecaster for retail purchases over the past two years, according to data compiled by Bloomberg. “This puts a lot of pressure on the next month’s number to be very strong to make up for the weakness in April.”

more...

http://www.bloomberg.com/news/articles/2015-05-13/retail-sales-little-changed-as-americans-reluctant-to-splurge

[Eleanors38]

1. Reluctant? Hell, who can?

[TBF]

2. Take your complaints to the billionaires -

they are the ones with the money. Smh.

[benld74]

3. Just like the JOBS that were to come when the Tax breaks were given

[Buns_of_Fire]

4. "I predict the new software I'm developing will give you the correct answer 62% of the time."

"You're our boy. Is $250,000 a year plus stock options enough?"