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Retail Sales Disappoints, Tests Recessionary Waters Ahead Of Fed Meeting
Following our warning that both Gallup's and BofAML's indications of retail sales were sliding to multi-month lows, it should come as no surprise that retail sales in August disappointed printing +0.2% MoM (missing +0.3% expectations), with ex-autos (0.1%, Exp. 0.2%) and ex autos and gas (0.3%, Exp. 0.4%) also missing.
This dragged the YoY retail sales change down to a recession-looming +1.6% print. Ironically, while most headline data missed, the GDP-dependent 'control group' rose a fraction more than expected (+0.4% vs +0.3%). Since this is the last major data point before The Fed's big decision, it would appear another nail in the coffin of a rate hike was just struck.
Retail Sales on an annual basis rose just 1.6% from 2014, testing increasingly recessionary waters.
The only silver lining: the control group, which rose 3.5% Y/Y. At some point the gap between these two series will have to close.
And the full breakdown: best performing categories - Miscellaneous retailers +0.9% and Health and Personal Care stores at 0.8%; Worst performers: building matterial and garden equipment: -1.8%.
Charts: Bloomberg
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Poor Walmart.
The Glass-Steagall Banking Act of 1934 gets repealed in 1999 and from then on, the U.S. economy has been tanking as the banksters loot this country. In 1991, to grab a few trillion dollars, Treasury Secretary Nicholas Brady issued "Brady Bonds," the equivalent of gold plated tungsten bars. Evidence linking the Bush crime cartel to those bonds was part of the debris from the falling World Trade Center One and Seven buildings and the blown up Pentagon wedge. Now, no need for Brady Bonds, any investment house can securitize bogus assets and issue CDOs or synthetic CDOs.
Cnbc link reported this was great. Fed can raise rates.
Bloomy says consumer confidence is up (laugh track deafening)
They apparently think the consumer is still alive?
it's a "Recovery" RAISE THOSE RATES!!!!!!
The poverty is robuster then expected. Yellen, Raise those Rates!
It isn't poor Walmart. It's poor everybody but the 1%.
Time to warm up the helicopter?
Wait ... you can't go giving money to people as if they're banksters.
Raise rates already.
No surprsie here. No jobs, no money, no spending!
Resturants on their way out!
CLEARLY!!! low interest rates for banks and savers and high interest rates for consumers does not work for a consumer economy.
If consumption is actually wanted (No agenda 21 or agenda 2030), then the banks should pay savers 7% on their savings and charge borrowers 1% or less.
THE GOT IT ABSOLUTELY BACKWARDS!!!
Or maybe they got it right, but the goal was misstated. Wake me when there is a 20% drop in consumption.
Buy the market before it is too late. FED wont raise the rate for now. Buy the dips, eat some popcorn and enjoy the profit
Sherlee you must be joking ... ah the old double encryption trick.
Switch the T and the D on your name please
Ah ah that was so so funny, but not applicable
why not? it's free money. thanks janet.
Max out cash advances on all cards. Buy the things to get you through the winter.
But CNBC's head cheerleader Steve Liesman said this is a great report and the economy is booming. Who lies man?
Higher rates, AHOY! Put that in your Funk and discounted cash flow model.
Liesman said since everything costs less, the number actually shows a boom in units sold. Ummm, exactly what is cheaper besides a gallon of gas? Shipping rates haven't dropped. Food prices haven't dropped. A cost of a new cell phone hasn't dropped. Plane tickets haven't dropped. ???
Liesman said since everything costs less
agree, that is a lie. He doesnt believe his own cnbc cheerleader bs. I can't watch that anymore anyway so he doesnt matter, and i get my gartman updates here. very entertaining version vs annoying.
Did someone mention poor economic numbers? BULL(shit)ISH!!!!!
Let's look at the FACTS. Low interest rates are not working. The FED has failed. It is time to let interest rise. Continued chest compression is not helping. Time for some defibrillation for the economy.
I guess nobody went back to school, in recent weeks.
/s
Yep. Mom here and my first thought was bad number in August is a pretty negative indicator.
For families with kids back to school is usually the next biggest spend to Christmas.
And most (though certainly not all) moms prioritize spending on their kids vs. themselves.
I can have the same tees and jeans forever, but she is still growing...just took 2 big bags of outgrown stuff to a resale shop. Nice to get something back, though nowhere near the spend for all the replacements.
ETA: FWIW the resale place was busy, a line of people waiting to check out and at least 50 big bins of clothing sold to the store for resale stacked up behind the counter.
Second-hand and thrify stores are doing well, in these parts.
Yes yes, go ahead and short this market. Mwahaha