Retail Sales in U.S Increase More Than Forecast

[LordBalfor]

Originally Posted by sanrene

The recession started in 2007...doesn't take a rocket scientist to know that.

Sure - but it was relatively MILD until after the financial crash of 2008 - at which point the economy "fell off a cliff".


Ken

[LordBalfor]

Originally Posted by cleanhouse

Ok, so thats why the Yahoo finance article says 2009 had a 6.2% drop in retail sales for the entire year.

That is different then a month over month stat I take it.

Yup.
The OVERALL year of 2009 was HORRID (as I said it would be) - BUT December of 2009 was BETTER than December of 2008.

Ken

[LordBalfor]

PS to Cleanhouse -

The thing to keep in mind is that what REALLY killed retail sales (and the overall economy for that matter) was the PANIC that set in beginning in September of 2008 when the stock market collapsed. Prior to that were WERE in recession (and sales were down accordingly) but it was not a PANIC. After the financial crises hit home in September of 2008, firms really excellerated their layoffs and the average person REALLY began to worry about their job and thus cut back DRASTICALLY on their spending. THAT had a HUGE impact on the economy. It was THEN that there was widespread talk of a DEPRESSION rather than a "mere" recession.

Ken

[pghquest]

Originally Posted by pghquest

If wholesale freight continues to be down, then indeed retail sales will also be down in future quarters. Someone has to carry the products to the stores to sell..

Anyone remember these postings? Everyone proclaimed a recovery was here and I clearly said that it wasnt at the time.

NOW we are seeing wholesale freight increase, so I will say NOW that a recovery is on the way.. There has been huge improvements in the wholesale freight volume over the last quarter which should affect retail over the next six months or so. What we have to watch for now, is to make sure retail stores dont get overstocked and have to sell everything "on sale" to clear out inventory.