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Bank of America No Longer Even Bothers To Blame The "Weather" Or "Storms" For Weak Consumer Spending

Tyler Durden's picture




 

Two weeks ago, when Bank of America found that its weekly retail spending data has continued coming in far weaker than expected compared to 2013, it did the laughable: it blamed not the weather in general, but one storm in particular, to wit: "once again adverse weather potentially impacted spending last week, as the storm “Titan” moved across the US over the weekend of March 1st and 2nd and was followed by yet another cold spell." Two weeks later, after shockingly BofA finds precisely the same weakness continuing into the end of a balmy March, it no longer even bothers looking for excuses. The sad reality: there are none.

Our weekly internal BAC card (credit+debit) retail ex. gas spend data for last week (ended March 21st) rose 2.7% over the same week last year, broadly in line with the 3.0% increase the prior week and sharply above the 1.7% YoY spending growth in February and 1.0% for January. However, while retail spending thus appear on an accelerating path away from the cold months, growth rates remain well below last year’s numbers of 5.3% and 3.5% for the third and second week of March, respectively. Finally, note that our internal data is often not a good predictor of the official Census Bureau data.

 

Of course, the data would be a great predictor if it was "predicting" a bullish print.

We wonder how many months of balmy spring, summer and fall weather it will take before economists finally admit that the drop in consumer spending has nothing to do with climatic conditions (hint: Amazon.com), and everything to do with the fact that consumer are tapped out. Wild guess here: many.

 

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Fri, 03/28/2014 - 09:39 | 4602199 Rakshas
Rakshas's picture

The American Consumer is dead so What  difference does it make?? 

Fri, 03/28/2014 - 09:42 | 4602217 SheepDog-One
SheepDog-One's picture

When the slaves have all dropped over dead....the plantation owners have a real problem.

Fri, 03/28/2014 - 09:53 | 4602256 Richard Chesler
Richard Chesler's picture

If you like paying for corrupt Obozocare, you can keep it.

Fri, 03/28/2014 - 10:04 | 4602295 Boris Alatovkrap
Boris Alatovkrap's picture

Weather is causing of automotive accident, not economics:

https://www.youtube.com/watch?v=bY0dYa4NJi4

Fri, 03/28/2014 - 10:18 | 4602337 Sudden Debt
Sudden Debt's picture

That's why we need robots!

Fri, 03/28/2014 - 09:46 | 4602227 TideFighter
TideFighter's picture

Can't we just form one entity, like the Supreme Bureau of All Bullshit, where all this crap is fed fom one source in one report. My head hurts. 

Fri, 03/28/2014 - 10:16 | 4602334 Boris Alatovkrap
Boris Alatovkrap's picture

Is not all bovine excrement now incorporate in oval office?

Fri, 03/28/2014 - 10:11 | 4602320 TideFighter
TideFighter's picture

COM-MOD-I-TY [Kuh-Mod-Ii-Tee]

Stock Exchange. any unprocessed or partially processed good, as grain, fruits, precious metals.

ORIGIN: 1375-1425; late Middle English commodite <Anglo-French < Latin

(SEE COMMODE: (SHITTER). 

And nobody saw it coming (haha).

Fri, 03/28/2014 - 10:24 | 4602367 doctor10
doctor10's picture

The principle advantage America has always held over the rest of the world has been the Constitution, The Bill of Rights, -with both upheld by the Rule of Law.Historically capital was worth more in the USA than anywhere else in the world.

Absent those assets, the risks of business in the USA outweigh the potential for profits. Capital currently is worth nothing in the USA. By the time it is licensed, insured, regulated, taxed, and thoroughly proctoscoped by Homeland Security and the NSA -there is nothing left for anyone.

We are currently living off the credit the world extended the Real America in its prime.

Fri, 03/28/2014 - 09:37 | 4602200 GetZeeGold
GetZeeGold's picture

 

 

Could just blame it on 29.5 hr/wk jobs.

Fri, 03/28/2014 - 09:47 | 4602234 corporatewhore
corporatewhore's picture

and minimum wage with no benefits

Fri, 03/28/2014 - 10:06 | 4602303 Boris Alatovkrap
Boris Alatovkrap's picture

...or minimum benefit with no wage.

Fri, 03/28/2014 - 10:19 | 4602346 Sudden Debt
Sudden Debt's picture

benefits are for closers!

Fri, 03/28/2014 - 09:48 | 4602239 holmes
holmes's picture

Everybody is busy this week signing up for Obamacare.

Fri, 03/28/2014 - 09:51 | 4602249 GetZeeGold
GetZeeGold's picture

 

 

Hopefully someone will actually pay for it this week.

 

Alas we'll never know....cause no one has access to the backend of that thing.

Fri, 03/28/2014 - 10:09 | 4602314 Boris Alatovkrap
Boris Alatovkrap's picture

Obamacare is cost of money...? What is point? Amerikan citizenry is plain dumb crazy - vote for idiot banana ear freak not is one, but is twice!

Fri, 03/28/2014 - 09:57 | 4602272 TideFighter
TideFighter's picture

One of the major reasons (hardships) for extending ObamaCare:

"Some unfortunate folks do not own, or have access, to a computer."

So how were 11,000,000 "potential" enrollees notified of the hardship extension? 

email

Fri, 03/28/2014 - 10:11 | 4602322 Boris Alatovkrap
Boris Alatovkrap's picture

This is so much typical of IT idiot who is send email:

"Please, SMTP is down, you are not receive email today."

Fri, 03/28/2014 - 10:54 | 4602476 Uncle Remus
Uncle Remus's picture

I don't get it...

Fri, 03/28/2014 - 14:44 | 4603310 Boris Alatovkrap
Boris Alatovkrap's picture

Let Boris explain using of more old traditional technology... Grog is break drum skin, must have Ork get new skin for drum, so must beat out signal for sending Ork message, "please to obtain new drum skin for Grog!"... Doh!

Fri, 03/28/2014 - 10:06 | 4602300 corporatewhore
corporatewhore's picture

i've tried to navigate through it and was exhausted by the time i got through.  Information overload, technical difficulties.  i gave up and just want my toothache to go away.  i think i'll head to denver for a miracle cure.

Fri, 03/28/2014 - 10:15 | 4602331 Boris Alatovkrap
Boris Alatovkrap's picture

Boris cousin, Ivan Turipyuov, is also navigate Healthcare.gov, and is lucky find thousand of SSN and credit card information.

Fri, 03/28/2014 - 10:25 | 4602369 F.A. Hayek
F.A. Hayek's picture

Move to Boston with cousin Tsarnaev. 84,000 Massachusetts residents are getting a letter from .gov saying that the problems with their healthcare signups give them free healthcare until the problem is resolved!

http://bostonherald.com/news_opinion/columnists/howie_carr/2014/03/carr_health_care_no_need_to_pay_any_money

Fri, 03/28/2014 - 09:57 | 4602271 oklaboy
oklaboy's picture

29.99999 to be correct

Fri, 03/28/2014 - 10:20 | 4602351 F.A. Hayek
F.A. Hayek's picture

When you get a second job to make up for the 29.99999 hour first job, that means twice as many jobs!

This will be the best summer of recovery yet.

Fri, 03/28/2014 - 09:39 | 4602206 101 years and c...
101 years and counting's picture

luckily for the central printing fucks, mass inflation in food and energy will "boost" spending for all essential items.  and destroy spending for....everything else.

Fri, 03/28/2014 - 09:43 | 4602221 NoDebt
NoDebt's picture

If you're a Keynesian, it doesn't matter what you spend your money on, just that you spend it in ever greater amounts.  When you run out of money, borrow it.  When you can't borrow any more, have the government borrow it for you.

You are now up to speed on the last 100 years of monetary and economic policy in the United States.

Fri, 03/28/2014 - 09:49 | 4602245 TideFighter
TideFighter's picture

I got it!   Kenyanesian. 

Fri, 03/28/2014 - 09:55 | 4602263 negative rates
negative rates's picture

Our records show you owe $17 trillion and they are requesting payment immediately, how much can you come up with right now?

Fri, 03/28/2014 - 09:46 | 4602233 SheepDog-One
SheepDog-One's picture

People are pretty ingenious. I've got 1 friend who gets all her paper towels and cleaning stuff from work. Not stealing cases of the stuff or anything,  just a roll of paper and half bottle of cleaner here and there. 

Fri, 03/28/2014 - 10:04 | 4602293 Calculus99
Calculus99's picture

That's hilarious. I used to work with a fella who did exactly the same, bog roll, kitchen papewr, coffee, tea, sugar. He told me once that he hasn't bought any of this stuff from a shop for years. Plus of course all the stationary and printer toner.

Fri, 03/28/2014 - 10:55 | 4602480 toady
toady's picture

I didn't by toilet paper for ten years.

Fri, 03/28/2014 - 09:39 | 4602208 Ness.
Ness.'s picture

Why is the S&P exploding higher this morning?  Anyone?

Fri, 03/28/2014 - 09:41 | 4602215 TeamDepends
TeamDepends's picture

Because Obama.

Fri, 03/28/2014 - 09:43 | 4602223 SheepDog-One
SheepDog-One's picture

Because USA! USA! USA!

Fri, 03/28/2014 - 09:46 | 4602226 Bearwagon
Bearwagon's picture

Just because! Period!

Fri, 03/28/2014 - 09:47 | 4602235 Nue
Nue's picture

Because Janet Yellen got to work this morning and remembered to press the button this time. She's new to the job so sometimes it's slips her mind till the late afternoon.

Fri, 03/28/2014 - 09:40 | 4602210 Dollarmedes
Dollarmedes's picture

No. There's snow...it's clogging up your inter-tubes.

Fri, 03/28/2014 - 09:40 | 4602211 TeamDepends
TeamDepends's picture

Full speed ahead, Scotty!  Aye aye, Cap'n (ya blouse-wearin' poodle-walker).

Fri, 03/28/2014 - 09:46 | 4602231 Bearwagon
Bearwagon's picture

Ludicrous speed now! Go!

Fri, 03/28/2014 - 09:56 | 4602269 negative rates
negative rates's picture

Don't get exhausted, i'll do some drivin.

Fri, 03/28/2014 - 09:46 | 4602229 Nue
Nue's picture

It's called the US consumer is broke. All the money has been re-routed into Wallstreet bypassing them completely.

Fri, 03/28/2014 - 09:49 | 4602246 Spungo
Spungo's picture

We could spend a lot more money and fix this damn economy if our government would do the rational thing and sell our resources to the Chinese. We could give them 100% ownership of all rain water in return for them lending us money to waste on shit we don't need.

Fri, 03/28/2014 - 09:51 | 4602252 buzzsaw99
buzzsaw99's picture

notice how "spending" is up every year by the exact amount the maggots want it to be up?

Fri, 03/28/2014 - 10:56 | 4602489 Uncle Remus
Uncle Remus's picture

Gasp! That sounds conspiratorial.

Fri, 03/28/2014 - 10:02 | 4602289 Calculus99
Calculus99's picture

Don't count the pumpers out, I'm sure they'll think if new excuses.

Fri, 03/28/2014 - 10:04 | 4602292 Davilis
Davilis's picture

p>Enough already about the weather!  It DOES matter and the effects last longer than a single storm.  Many people will be paying down record energy bills well into 2014.  This constant bashing of weather excuses by ZH makes the site look stupid.  Yes, weather is not the only factor affecting economic numbers but to constantly imply that weather has no effect is just as bad as blaming everything on the weather (a position rarely taken, I.e. most claim that weather has been a contributing factor)

Fri, 03/28/2014 - 10:14 | 4602330 Ness.
Ness.'s picture

Did we have "weather" last year?  Are we going to have weather next year too?  I just want to check so I can adjust my portfolio.  I've never heard of this weather thingy you're talking about and I want to be prepared.

Fri, 03/28/2014 - 11:39 | 4602641 Frostfan1
Frostfan1's picture

When the gas and electricity bill come in $100 higher than last year, it matters and those bills are due now not last month.

Fri, 03/28/2014 - 10:17 | 4602335 TideFighter
TideFighter's picture

So, the housing data that fell off more than 7% in the southern region, where there was no snow and ice, and was the major decline in the US, di not register with you? Or the fact that data coluld not be collected because of the cold weather? Or that most of the unemployment enrollees in fact, enroll online? Go away.  

Fri, 03/28/2014 - 13:06 | 4602917 Davilis
Davilis's picture

Please, proceed to cherry-pick a few more statistics to make your point.  Which really makes my point in that ZH and posters constantly do this regarding the weather to imply it's not a factor.  It is.  When regulators mandate the redirection of propane supplies due to record shortages and high prices for the FIRST TIME EVER, it's time to get a clue that weather DID matter this year in the aggregate.

Fri, 03/28/2014 - 10:43 | 4602428 dogismycopilot
dogismycopilot's picture

the consumer trade in guns is still going strong in America, no? 

US consumer not completely tapped out yet.

Fri, 03/28/2014 - 10:58 | 4602501 DIgnified
DIgnified's picture

It's just all little airborne.  It's still good!  It's still good!

Fri, 03/28/2014 - 11:40 | 4602649 Frostfan1
Frostfan1's picture

Doesn't the above just mean that Obama dictates to the auto companies to offer 8 or 9 year loans rather than just 5 to the 7 he already jammed down their throats?

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