Retail Sales Fall In March As Consumers Pull Back; Americans Buy Fewer Cars

[Purveyor]

Source: Associated Press

Christopher S. Rugaber, The Associated Press 11:12 a.m. EDT April 13, 2016

WASHINGTON - U.S. retail sales fell last month as Americans cut back on their car purchases, the latest sign that consumers are reluctant to spend freely.

A 2.1% plunge in auto sales — the steepest such fall in more than a year — accounted for most of last month’s drop. But sales were weak in some other sectors, including clothing, restaurants, and at online and catalog stores.

Overall retail sales fell by a seasonally adjusted 0.3% in March, the Commerce Department said Wednesday, following a flat reading in February and a drop in January.

Americans have been more cautious about spending this year than most economists expected, despite steady job gains and lower gas prices. That’s a key reason why analysts now think the economy barely expanded in the first quarter.

Read more: http://www.usatoday.com/story/money/business/2016/04/13/economy-retail-sales-consumer-spending/82973172/

[LiberalArkie]

1. Yep steady job gains at the bottom 15% pay scale and loss at the 100k a year scale

will kind of dry up the spending.

[whatthehey]

3. Gosh that median weekly pay metric at the BLS must just be plummeting

If what you say is true.

[Wellstone ruled]

2. Okay,just looked at several data points.

Appears we are seeing Gannet and their Right Wing attempt to crash the economy continues. Somebody better clue in Bloomberg,their on air today is 180 degrees of what Gannet is peddling.

Looks like the Market is baking in a Democrat in the White House and Senate going the same direction. Mr. Obama saved this Countries Behind,like many,did not like his trusting McConnell,but that is another topic,and the GOP's Mouth pieces are trying to save the Senate and House and to hell with the White House. USA today paper and their affiliates,continue to print this story day in and day out,well we are the only game in town and the rest is history.

[Yo_Mama]

4. I think many moderate/lower income households are seeing high inflation.

They're a little bit squeezed. Rational people get more cautious with spending when that happens.

Also, the auto sales drop was probably related to problems with the lower tier of subprime auto loans. They had reached the limit in financing, and the oilpatch states are seeing a cascade of problems.

http://money.cnn.com/2016/03/15/investing/subprime-unpaid-auto-loans-oil-crash/

Edited to add:
By February 2016, 60-day subprime auto delinquencies had reached 5.16%, higher than 2008's peak.
http://www.autofinancenews.net/fitch-subprime-auto-delinquency-levels-reach-two-decade-high/

[SDjack]

5. 2/3 of US corporations don't pay taxes.

If they paid their fair share, maybe we could buy some cars.

[Elmer S. E. Dump]

6. Hey, numbnuts - they would gladly spend money if they had any! Morons!!