Retail Sales Down for the Third Month in Row
the staff of the Ridgewood blog
Bloomberg News reported that U.S. retail sales “unexpectedly” dropped and the International Monetary Fund cut its global economic growth forecast .The drop in Retails sales was the third drop in a row and the first time this has happened since the recession started in 2008 .
According to Bloomberg U.S. retail sales dropped 0.5 percent in June, following a 0.2 percent decrease in May, Commerce Department figures showed today. The decline was worse than the most-pessimistic forecast in a Bloomberg News survey in which the median projection called for 0.2 percent rise.
James Dunigan, who helps oversee $112 billion as chief investment officer in Philadelphia for PNC Wealth Management, told the new service in an interview.“The retail sales gives you another indicator that uncertainty has showed up in the consumer side,” “We’re in a bit of the summer doldrums.” However retail does traditional tail off in the summer months with consumers putting off large buying decisions until the fall.
Howard Davidowitz, chairman of Davidowitz & Associates a longtime retail consultant, told Yahoo Finance he was not shocked by Monday’s retail report.
“The American consumer is going to continue to get poorer,” he says in the accompanying video. “They’re going to shop at the places that are cheapest. This is not rocket science.”
The IMF cut its 2013 global growth forecast as Europe’s debt crisis prolongs Spain’s recession and slows expansions in emerging markets. The IMF predicts growth worldwide will be 3.9 percent next year, less than the 4.1 percent estimate in April, the fund predicted in an update of its World Economic Outlook.
Manufacturing was the one bright spot with the New York region expanding in July at a faster pace than anticipated, signaling factories will keep contributing to growth. The Federal Reserve Bank of New York’s general economic index rose to 7.4 from 2.3 in June. The median forecast of 51 economists surveyed by Bloomberg News called for an increase to 4.0. Readings greater than zero signal expansion in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut.
sources : http://finance.yahoo.com/blogs/daily-ticker/retail-sales-drop-0-5-june-u-consumer-165255503.html