Tuesday, April 14, 2009

Sale Of The Century

Retail sales down sharply in March, always bad news in a consumer-driven economy.
Sales at U.S. retailers unexpectedly fell in March, snapping two months of increases, as motor vehicle and electronic good purchases declined, according to a government report on Tuesday that indicated subdued consumer spending amid rising unemployment.

The Commerce Department said total retail sales dropped 1.1 percent after rising by a revised 0.3 percent in February, previously reported as a 0.1 percent fall.

Excluding motor vehicles and parts, sales fell 0.9 percent in March, compared to a 1 percent gain the prior month. The data highlighted the continuing problems in the U.S. auto industry, with vehicle and parts sales dropping 2.3 percent after a 3 percent decline in February.

Analysts polled by Reuters had forecast retail sales rising 0.3 percent in March. Excluding motor vehicles, sales had been predicted to be flat.

Despite the Dow's big jump in the last five weeks, consumers are dealing with the reality of a stumbling economy. Couple of nasty data points:
Gasoline sales fell 1.6 percent in March after increasing by 3.1 percent the previous month. Sales of electronic goods tumbled 5.9 percent, versus a 0.7 percent gain in February, while building materials eased 0.6 percent after slipping 0.5 percent.
Kinda explains that record trade deficit collapse if Americans aren't buying electronics imports from Asia, and that means stores that sell electronics and countries that manufacture them are going to continue to hurt for a long, long time. We're the engine that drives the world economy, and that engine is slowing down in a major way.

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