Retail Sales Fall by 0.3 Percent in Oct.

[Spazito]

WASHINGTON - America's shoppers tightened their belts in October, depressing sales at the nation's retailers by 0.3 percent, the second month in a row that sales declined, the government reported Friday.

<snip>

The Commerce Department (news - web sites)'s report showed that the decline in sales in October was led by a 1.9 percent drop in automobile sales and a 1.6 percent drop in sales at gasoline stations, reflecting lower prices at the pump.

<snip>

Shoppers opened their wallets and pocketbooks last month when it came to buying building and garden supplies, furniture and home furnishings, and health and beauty products. And, they went out to dinner more.


But those sales increases were outweighed by the drop in auto and gasoline sales, as well as sales at sporting goods and music stores, grocery stores and department stores.

more

http://story.news.yahoo.com/news?tmpl=story&cid=668&e=2&u=/ap/economy

[Guaranteed]

1. Not a good sign heading into the holidays.....nt

[Beetwasher]

5. Exactlty

This is even worse than it seems. Retail sales should build steadily in the few months leading up to Xmas. Remember, Halloween is also a holiday that spurs some retail sales. Apparently it didn't.

[CMT]

2. yes and Walmart and Target yesterday rolled back their

holiday sales expectations. I honestly think the huge spike in the third quarter GDP was due in large part to the rebates per child that people received and now that they are gone things will simmer down.

[Maeve]

4. Don't forget the cash-outs from re-financing

They also helped keep the spending going last quarter.

[Spazito]

3. The reduction in sales at grocery stores is interesting...

I can understand more the reduction in sales in the other areas given that, for the most part, they could be considered extras but groceries are not. If people are reducing buying even the necessities in life, that's alarming, imo.

[Beetwasher]

6. They're buying the cheaper goods, I suspect

Instead of the name brands they're buying the no-name brands to save money. This drives down overall sales receipts.

[Spazito]

7. Ahhh, thanks, didn't think of that aspect, it will be interesting to see..

if grocery sales continue to fall in November.

[KayLaw]

15. Wal-Mart

Last week at Publix, the checker told me she never shops at grocery stores - only Wal-Mart, and saves about $50 per week.

[MUAD_DIB]

8. One hellova recovery the that Chimp 'n Co.

can be mighty proud of.

My GF and I went to a B&B this past weekend and the owner of it even confided that the summer economy hadn't been that great.

Nowhere do I see or sense a recovery in this area. I don't see it in the faces on the streets. I don't believe that we are there yet.

I hope...

[Beetwasher]

10. Smoke and Mirrors

It's bad. I live in Manhattan and in some of the richest neighborhoods there are empty store fronts on EVERY block that have been empty for a long time. I've never seen that before. Businesses that have been in business for 15 years or longer have closed and the stores remain empty.

[pfitz59]

11. Farmer's markets, bulk retailers, etc......

Saw lots of "victory gardens" this summer. Big chain grocery markups are obscene.

[Media_Lies_Daily]

9. Unemployment claims up and retail sales down?? IMPOSSIBLE!!...

Don't they know we're in a growing economy???

[ProfessorGAC]

12. Sigh!

When all the media was trumpeting the "7.2% growth last week, i wrote right here at DU that is was illusory and gave the reasons why.

But, it's really simple in a nutshell. Consumers ARE NOT BUYING!

For the past 50 years, consumer spending has been 62.7 - 66.3% of GDP. Now, it's 62.4%! The spending that drove the GDP in Q3 was the huge change in gov't spending, using borrowed money. In addition, the GDP has not been corrected for the difference between the estimates of consumption based upon producitivity numbers. The "C" in GDP is estimated for the first half of the next quarter based upon industrial buying and goods shipped. If they don't sell in the next quarter, production slows down one quarter after that.

Until consumer confidence rises to within the +/- 3 standard deviations of the data since 1950, and consumer spending as % of GDP rises back into the midrange of the normal span, there is no sustainable growth.

Just wait, we will hear gnashing of teeth over a slow Christmas buying season this year, too! Recovery, my foot!
The Professor

[MUAD_DIB]

13. I fear it's going to be a lean buyer's season.

So long as I can see family and friends and that they are well is al that really matters.

[dusty64]

14. Sounds like the "chimp recovery"

is in full swing. Wonder if he'll be trumpeting these rotten numbers at his next fundraiser.