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Retail Sales Growth Tumbles To Weakest In 6 Years As Auto Sales Drop
Despite all the industry's exuberance over auto sales in America, the government's retail sales data shows vehicle sales dropped 0.4% in October (in other words, automakers are channel-stuffing). This rolled through the various headline data leaving a 4th miss in a row MoM and the weakest YoY growth for retail sales since Nov 2009 - deep in recession territory.
This is the 4th miss in a row for the headline retail sales data...
And sends the annual growth rate well into recession territory...
And even Ex-Autos the annual change is awkwardly low for a rate hike...
The full breakdown has something for everyone...
Charts: Bloomberg
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OMG!
EVERYONE Quick!
Get to Walmart! QUICK!
SPENDSPENDSPEND!!!!
this is probably good news for them. Less money = shop at cheaper places
Introducing.....the 30 year car loan.
What does it matter, for most 'Muricans they have a lifetime car loan, before they pay off their car they trade it in on a new one and a new loan. Perpetual loan.
"vehicle sales dropped 0.4% in October" despite record low interest rates and 72 month loans. Imagine how bad the sales would be if the interest rates were "normal".
month over month, year over year, vehicle sales have been at record highs for a long time.
A 0.4% decline isn't that big a deal. sales are still historically high.
It's something I can't quite figure out. Everyone has been crushed by stagflation, but they still have the ability to buy really expensive cars/suvs like they are going out of style.
Don't you mean they still have the ability to RENT really expensive cars/SUVs?
Agreed. This is a small blip in the recovery.
The <sarc> is strong with this one.
Right! Imagine a 6% car loan for the masses! But only imagine it, don't light the fuse!
but now they want to introduce negative amorization, so at the end of the loan you actually owe more than when you purchased the vehicle.
Then the banks will split the loans into tranches and sell them as bonds to retirement funds.
What could go wrong?
If you like your loan, you can keep your loan.
Introducing the "Delayed Car Repossession Act". Gotta keep somebody out there going to work.
A rate hike is the absolute worst option they could choose in this economy so, of course, they will rates rates "to restore credibility".
it's an Election year. that drives everything.
Edit: "raise" rates
So - everything really is awesome then. It's as awesome as Lehman!
And how are retail sales in Europe? Yes, they are booming there.
But gee, I thought the problem was with oil....
No! No! Nooo! I'm spending my gas 'savings' on a new car!!! ......all $2 of it! :-) But on a lighter note, new cars mean more sales tax revenue and more property tax revenue (in some places). So keep perpetuating the fraud until sometime down the road.....in several years.....the credit implosion becomes someone else's problem. ....for which Bush will be blamed again! :-) .......and the cycle continues.......
isnt bad news good news???
or is bad news bad news again?
just when i think i have it figured out, everything changes again.
slowing...slowing.....sloowwing.....ssslllloooowwwwwinggg...and stop.
tards on cnbs focused exclusively on that it all beat expectations. biggest tard from MS cliams, consumer is strong, wage growth fastest ever (seriously). and then scratch their heads, 'why isnt stocks going up on this great econ report?'. yes, tards, its a perfect machines input good data, prices go up. bloomberg is a bit better, they at least mock the weather crutch
Who could have guessed the loose monetary policy that raises prices while wages remain stagnent at best, would lead to such a horrible outcome.
"Why won't these damned serfs get into moar debt?! We're doing gawds work over here for crying out loud!
Clearly we're going to need a law that forces you to buy something!" ;-)
We already have that progressive policy in place. It's called "Obamacare".
Looks like stawks are grinding upward off the lows.
Could definitely be a large reversal day here. I know that's not exactly going out on a limb, what with the lack of true price discovery and any semblance of actual markets.
My friend who has been in car business for 20 years ago said he had his worse Novber ever. Sales just came to a complete stop (after a strong summer). December has started just as bad. And he says everyone is arguing and pissed off on both sides of the transaction. No one is happy. Trouble ahead.
That is exactly what it means. God help us all.
So you're waiting for God? Enjoy the magazines.
No, actually, I'm just waiting for people to acknowledge God. Right now, they are acknowledging satan.
In the Spring my dealer said he was having his best year EVER. Son who is in charge of internet sales is building a million dollar house things so good. Looks like it has stalled
hotrod, news for you: your son is a moron. Either that or he's cracked the endless $$$ code, but I'm going with moron.
Seriously, who in the world needs a million dollar home?
....
.....
.......
Crickets.
NOT his son. His DEALER'S son.
Reading comprehension.
FNE No it is my local car dealers son who is 27 building a damn mansion. Not me. I have Gold shares and living like a pauper
You need to ask him where the home is. If it's in the SF Bay area, it's a one bedroom flat.
Building it on a $600,000 lake lot.
A buddy who's a salesman at a Ford dealer here in Fort Wayne has been crying the blues for months. November was his worst month since he started there 3 years ago, and previous to that it had been a sharp slowdown since the summer.
Says he's looking forward to December sales, I told him to not hold his breath. People have to get through the holidays, plus they have to dealwith ObammyCare bullshit come tax time, at least a lot of folks do.
"Yes We Can". Idiot.
Well, hell. Numbers have been faked now for years. Hard to fake reality. But hard to tell that to people who think they are gods making up these stupid laws and policies, and marching us to WWIII. We have arrived here because the 10 commandments have been badly breached. Don't even think I'm preaching religion. Think of the 10 commandments as non-religious rules that must be followed for a society to survive, and that were adopted by religion. Think about what their nullification actually means in this manner: Thou can kill, thou can steal, thou can covet (yearn to take possession of) what is not yours, thou can lie as a witness, etc.. Which will bring any society to total ruin.
So despite the fact every bank economist is a bullish shill, they snuck in a low forecast so the headline could be a "beat." Despite the fact every one of them has said auto sales would not fall (and to buy stocks, of course).
I wish Escalade sales would crash to zero. Of all of the vehicles with obnoxious LED brake lights those are the worst. I bet they can be seen from outer space. Getting stuck behind one in stop and go traffic in the dark is torture.
Agreed. Some of this LED has gone to far.
It's easy to fix LED with lead.
Now wait a minute. On MARKETWATCH they said retail sales are awesome..
Retail sales show bit more strength in Novemberhttp://www.marketwatch.com/story/retail-sales-show-bit-more-strength-in-...
That shite, er site can make black look like white
If auto sales and production have been so great then what up with platinum?
Agreed. We were on track to sell the most car units ever this year which I guess is around 18 million. So yes what is up witn Platinum but for that matter gold and silver which are also setting demand records.
Platinum is used to make catalytic converters, gold and silver not so much...
I reject all this negativity. I'm sticking with CNBC.
https://www.youtube.com/watch?v=zDAmPIq29ro
Nothing to see here, unemployment is at 5% according to BLS, nevermind that only 44% of working adults have a full time job.
https://www.youtube.com/watch?v=qsvbYKr19ng
Why are car sales suddenly stopped?
The new, significantly higher Obamacare premiums hit the masses.
No doubt we need to Open the Borders some more to increase car sales to immigrants. Tag their asses with a 10 year car loan. Threaten them with deportation if they default
Which chemical factory blows up now?
I thought the donald could fix this? Oh that's right he wants muslims out and now the internets turned off, you know for our security. there goes the digital sales.
Auto sales really don't tell you a whole lot in themselves. People NEED cars, and existing cars occasionally require replacement. So you are going to see periods where sales pick up, and periods where sales slow down, depending on how many cars need replacing at any particular time.
This doesn't necessarily reflect the economy...absent any other signs of health it is probably dependent on how old the current drivers cars are. When you have the automakers pushing credit and making payments lower, many car owners approaching replacement-time will probably opt to replace a bit earlier, since they'll have to soon anyway.
The way people keep jumping on these monthly stats as if the slightest uptick means we're off and running is really kind of sad. How desperate for any good news they must be!
Here's a head's-up...You'll probably see the occasional uptick in stuff like appliance sales, etc. This is NOT a sign of impending prosperity for all. It simply means that a bunch of folks had their refrigerators crap out. After they take care of it, things will resume their previous downward momentum...