Stimulus Checks bolster retail sales

[w8liftinglady]

My question....where does inflation figure into this?

http://online.wsj.com/article/SB121327375087967705.html?mod=googlenews_wsj
WASHINGTON -- U.S. retail sales increased in May, rising double the rate expected in a sign consumers were using stimulus payments and that the economy might not be as weak as feared.

Meanwhile, U.S. import prices jumped for a third-straight month in May while prices from China hit a fresh record, a government report showed, suggesting rising oil prices and a weak dollar are fanning inflationary pressures.
Retail sales increased by 1.0%, the Commerce Department said Thursday. Economists surveyed by Dow Jones Newswires had estimated a 0.5% increase.

Sales in the previous two months were revised strongly upward. Sales in April increased 0.4%; originally, Commerce said April sales dropped 0.2%. March sales increased 0.5%; earlier, Commerce said March sales rose 0.2%.

The retail sales report is a key indicator of U.S. consumer spending. Consumer spending makes up about 70% of gross domestic product, the broad measure of economic activity in the U.S.

The healthy increase in May sales suggested consumers were putting to work some money the government kicked back to them in a plan to stimulate the foundering economy. Congress passed an economic stimulus package, signed by President Bush Feb. 13, to free up money for people to spend in the form of tax rebates. Those payments began going out in late April. About $48 billion in payments were cut in May, Treasury Department numbers indicate.

[bluestateguy]

1. I bought a new computer

but only because I had to. My old one crashed.

[Bucky]

2. For the past couple of years, the sluggish economy has helped keep inflation down.

But energy prices can be massively inflationary in an economy that depends on transportation as much as ours does. I'm glad the stim checks are taking the edge off of pressure against retail sales. I do kinda wander what will happen in the next quarter when oil prices are still this high and no one's getting any more stimulants.

[w8liftinglady]

3. I was thinking the same thing....when no one has disposable income..what next?

[Javaman]

4. when what happens after the checks are spent?

back to square one.

[bdamomma]

5. checks being sent out isn't going to help the economy

what total BS, * just throwing out scraps to the masses.

[Javaman]

7. Exactly right.

it's nothing but an artificial "boost".

When the economy is alreay in the toilet, throwing a bone to a hungry dog, does nothing.

[Winterblues]

6. Didn't the trade deficit rise to record numbers during this last month as well?

We appear to be stimulating China quite well..

[annabanana]

8. My stimulus check didn't cover the extra cost of gas my family

used this year.... not even close.

[Contrary1]

9. Half of my "stimulus" check will go to pay the increase

in my new and more fair property tax, compliments of Gov. Mitch Daniels; a Bush crony who helped craft his "tax cut". The movers and shakers bitched about taxes, so the middle class and poor get to pay a bigger chunk.

Sound familiar?