State Sales Taxes Flash Recession Warning

[Purveyor]

Source: Reuters

NEW YORK (Reuters) - About half of all states are collecting less from their sales taxes than expected, which could signal a recession lies ahead as the home market fades.

The receding housing boom could then reveal the underlying economic weakness it had camouflaged, according to Philippa Dunne, a co-editor with the New York-based Liscio Report, published by an economic research firm.

To Dunne, the recession warning light is flashing yellow.

"There are a lot of unknowns, but the state sales tax receipts are pretty much at recession levels," she said, adding about 25 states are seeing disappointing sales tax revenues.

It's not just jobs in construction, lending and real estate that are at risk. Less demand for materials, from cement to carpets, could cause malls and manufacturers to slash workers.



Read more: http://www.reuters.com/article/reutersEdge/idUSN1137468020071011

[sazemisery]

1. What? America is not shopping?!? How UnAmerican. n/t

[glowing]

2. Well, I'll be helping out that market a bit... I'm buying a home... but

a very conservative home that I can afford... 2 bedroom, 1 bath, 1 car garage for 2 adults and 1 toddler. So, I won't be saving any govt programs with my meager budget.

[Warpy]

3. The drop in the trade deficit is also not good news

for anyone counting on a robust consumer economy. China has been steadily raising prices, so the drop is doubly bad. It means that not only are things selling slowly now, retailers are expecting sales to be in the toilet for the next few months.

Unless they can come up with another "must have" toy this year, it's going to be a rather grim Christmas season for most retailers.

[madrchsod]

5. we are selling more stuff overseas because of the falling dollar

we would have boatloads more money if the rest of the world would come here to enjoy the sites..but who wants to come and be subjected to our home security thugs? hell they want to know everyone on every plane that flys across america without touching down..

[Purveyor]

8. Another 'telling sign' comes from the trucking industry that are

lowering their business forecast due to the slowdown in shipping.

Here is a report from monday:

Ryder Cuts Third-Quarter Profit Forecast as Weaker Economy Hurts Trucking

Oct. 8 (Bloomberg) -- Ryder System Inc., the largest U.S. truck-leasing company, said third-quarter earnings were less than it forecast because a weakening economy cut demand for commercial trucks. Ryder fell as much as 7.7 percent in New York trading.

Profit was $1.12 to $1.14 a share, Ryder said in a statement today with preliminary results. Its forecast had been $1.20 to $1.23. The Miami-based company also cut its full-year estimate to a range of $4.10 to $4.15, from $4.30 to $4.35.

Ryder blamed its fleet-management business, which provides trucks and services such as fueling and maintenance to commercial customers. Those include retailers such as Wal-Mart Stores Inc. and Home Depot Inc., said Todd Fowler, a KeyBanc Capital Markets analyst. That business accounted for $2.03 billion, or 62 percent, of Ryder's $3.25 billion in first-half revenue.

Investors had thought that because Ryder is a rental business, the company was more insulated from the freight slump than others in the trucking industry, Fowler said in an interview. He's based in Cleveland and rates Ryder a ``hold.''

---eoe---

http://www.bloomberg.com/apps/news?pid=20601103&sid=aP_9khAkom.c&refer=news

[NYC]

11. You ought to post this article separately

so people can recommend it.

[Dr.Phool]

4. Our sales tax reciepts will go up.

In another month, we'll be overrun by Canadians wielding their now high value Canadian dollars.

[madrchsod]

6. which in turn pisses off the canadian merchants

[Yavin4]

7. I Have One Question for All You Non-Consumers Out There?

Why do you hate America?

:sarcasm:

[Dr.Phool]

9. I consume a lot of imports from Russia.

It comes in a bottle.

[LiberalFighter]

12. Because I can

And I try to live within my means and buy for me and not because of others.

[ooglymoogly]

10. The Chinese will be flooding over here trading their diminishing

greenbacks for hard stuff before it is worthless...like sky scrapers, metal mines, retail chains, manufacturing plants and the like. Soon what is left of Murka will belong to foreign entities and we and our grandchildren will be stuck with the bill since our assets were sold for 10 cents on the dollar and we will no longer have even the cushion of credit.