US Consumers Tap Out: Retail Sales End Weakest Year Since 2009 As Control Group Tumbles
Several days ago, Bank Of America was "confused" why retail spending refuses to pick up, although it hoped that this would be a one time aberation and that the official government data would disprove what it was seeing in its card data. Well, that did not happen after the headline retail sales printed moments ago at -0.1% in December, falling from an upward revised 0.4%.
As Bloomberg summarizes, sales at U.S. retailers declined in December to wrap the weakest year since 2009, raising concern about the momentum in consumer spending heading into 2016.
This is where Janet Yellen decided to hike:
The 0.1 percent drop matched the median forecast of 84 economists surveyed by Bloomberg and followed a 0.4 percent gain in November, Commerce Department figures showed Friday in Washington. For all of 2015, purchases climbed 2.1 percent, the smallest advance of the current economic expansion.
But BofA's confusion should at least be resolved when looking at the core data, which was a big disappointment, as the Retail Sales ex auto was down 0.1% in December, below the 0.2% expected. Putting this miss in context, 66 out of 69 economists thought December retail sales ex autos would've been higher than actual.
But the biggest disappointment was the GDP-feeding control group which tumbled by 0.3%, a mirror image of the expected increase of 0.3%, and down from the revised 0.5% in November.
And just like that US retail sales put the wrap on the weakest year since 2009 as the manufacturing recession is now officially starting to spread to the service sector.
“It’s a disappointing finish, especially in light of the low oil prices,” Thomas Costerg, a senior U.S. economist at Standard Chartered Bank in New York, said before the report. “We need better wage growth.”
But that would mean hiring less minimum wage, part-time workers, which in turn would mean a sharp collapse in the only thing that the US economy "has going" for it.
So much for those "gas savings" prompting Americans to spend, spend, spend...
More details from the WSJ:
December’s sales slump was broad-based, as consumers spent less on general merchandise, clothing and accessories, groceries and gasoline.
Excluding motor vehicles, sales were down 0.1% in December, and excluding gasoline, sales were unchanged. Excluding both categories, sales were still flat last month.
Consumer spending is a key driver of the U.S. economy, representing more than two-thirds of economic output. Household consumption has helped the economy grow in recent quarters despite a stronger dollar and weak demand overseas, which have weighed on U.S. exporters.
Retail sales data, which are a key gauge for overall consumer spending, can be volatile from month to month. Sales growth has decelerated over the past year, reflecting declines in sales on gasoline, electronics and appliances, and department stores. Overall sales were up just 2.1%, a marked slowdown from the previous year’s 3.9% annual gain.
Slumping oil prices have also held down the sales figure over the past year, as consumers spent less at gas stations thanks to lower gasoline prices. In December, sales at gas stations fell 1.1%, and were down 19.4% from a year earlier.
Friday’s report also showed consumers stepped up spending at furniture stores, building supply and garden centers, bars and restaurants and online retailers.
Other recent data has suggested Americans may be starting to open their wallets as their incomes continue to pick up.
The slowdown, including electronics stores, clothing merchants and grocers, indicates Americans probably preferred to sock away the savings from cheaper fuel instead of splurging during the holiday season. The full table breakdown shows the widespread damage across every category:
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There is only one solution- charge more for health insurance. If you mandate the spending it will never go down and you can make the number whatever you want it to be.
charge more for health insurance
I stand in the presence of brilliance.
We need an executive order mandating all Americans to buy moar sweaters, shoes, jeans, etc....
But obammy just told everyone the other night that everything was doing great. He must not read ZeroHedge.
I guess it's just us pesky gun owners messing everything up. We're not tapping out...we're just putting everything into guns, ammo, food storage, and phyzz PM, bitchez!!! ;-)
Keep stackin'!
No Wonder the BDI is what it is today. This is fucking scary.
http://www.dryships.com/pages/report.php
Exactly... take half of a working person's income through gov theft and give 10% of it to someone who has never worked, spend 200% of the remaining 40% on gov bullshit/fake jobs and now you have a situation where the golden goose goes Gault.
And if you have no money to spend on insurance, the government prints up the money and pays for the insurance, also counting as spending.
"We never saw this coming"
Why stop there? If healthcare can be a right, so can iShit.
Don't these people realize that if you have no money or credit, buying shit becomes difficult?
pods
My dear Mr.Pods:
Such an ideacould not be further from their minds.
The consumer must be taxed more if he's too damned selfish to spend his meager savings on a new Ford Fusion!
Selfish taxpayerses! Tricksey, false non-spending 'saverses' - we hates them, Precious!
Pods... They don't give a fuck, as long as the 0.01% lead the sheep to slaughter.
trav7777 once said that they would have to 'reset' everyone credit score to 900 to jumpstart debt based consumerism,........or was that Mako?
either way they were both right
I guess they didn't know it was already 'mission accomplished'.
Pretty simple folks, everything ZH and the commentors here have been talking about...it's happening. TPTB are going to force this down until the Fed meets to try and get them to do something. I expect a cut and rumors of QE5 by March
That won't matter.
An economy based on consumer spending based on credit cards and loans running into trouble, eh?
Putin's fault.
putin, and these guys http://theconservativetreehouse.com/2016/01/15/oregon-standoff-update-fb...
overheard on the street:
"why don't they just give every family in America the money they owe us?"
the reply of passer by:
"yep, dat powerball money should go to everyone who bought a ticket"
me, I just smile and think: if ave john q public only knew the fucking they get by our money masters, they would demand blood with that helicopter drop of dollars for everyone.
chopper dollars from the sky
a billion silv---
Dash 19 ? Holy Ffff
Pop-Cornomy
Cramer looks like he just had an enima. But "earnings have been pretty good" lol
He's good now, He went to the jon and had an outima.
Cramer is retarded:
What the heck is the consumer doing? Why doesn't she go out? Why doesn't she spend more?
http://realmoney.thestreet.com/articles/01/14/2016/cramer-best-buys-holi...
What dont these Economists know..its all going to Obamacare....its easy to see
CENTRAL BANKS' CRIMES AGAINST HUMANITY -- HEARINGS, TRIALS, & PUNISHMENT
When do the Congressional Hearings to examine the crimes that the Fed has committed start?
Then the public outcry for criminal charges and jail time?
Maddoff got 300 years for his crimes, the Fed's are much worse. Can we give them 1000 years each?
Only after we "Restore Democracy to Syria".
"Maddoff got 300 years for his crimes, ..."
That was his own fault. The Feds went after Bernie like a pack of rabid hyenas because he stole from the rich.
If he stole from workig people and widowed grandmothers living on social security ... like the rest of Wall Street ... he would still be getting bonus checks and floating around on his yacht in Palm Beach.
It's really hitting the fan now isn't it?
Fan up from low to medium speed. Just one more notch to go!
Fan will be running at ludicrous speed before all is said and done.
pods
It's not so much the speed of the fan as it is quality of the crap that will spray us....
speaking about taps: how about a double tap to the central banksters?
If you save $5.00 at the pump and spend it somewhere else there's no gain in the economy. Gas station revenue down-$5.00 somewhere else is up+$5.00.
Someone please teach math to the economists and the Fed.
True, but $$ spent at the pump is some 20-50% tax revenue to the Feds, locals and states. The same $$ in retail only results in 0 - 9% sales tax.......unless it's alcohol, which is a tax on a tax to some 50%. So basically, the government wants you to take your gas $$ savings and sit at home and drink! Cheers!
LOl. So true. I am so sick and tired of hearing this dumb shit about "where is the boost in consumer spending from low oil price?" I can't be too suprised though. These are the same people who think taking a dollar out of the economy and having the governement spend it instead is some sort of net increase in money spent. We are all doomed because our world is ran by complete morons.
"... a year marked by slowing consumption despite a steadily improving labor market ..." - Bullshit Artist
It's a mystery I tell you. All those new 25 hour per week jobs at minimum wage with no benefits, and yet they are still hoarding their money. Golly, some mysteries will never be understood. Perhaps they are smuggling the cash out of the country to pay for their Swiss chalet with the Bentley in the garage. Yeah ... that's the ticket!
On the other hand ...
“Anyone claiming that America’s economy is in decline is peddling fiction.” - Barack Obama