Retail sales dip more than expected while jobless claims rise!
WASHINGTON - August 13, 2009 - Retail sales disappointed in July and the number of newly laid-off Amerikans filing claims for unemployment benefits rose unexpectedly last week. The latest government reports reinforced concerns about how quickly consumers will be able to contribute to a broad economic recovery.
“There is really no positive spin to put on these numbers,” Jennifer Lee, an economist with BMO Capital Markets, wrote in a research note. “The U.S. consumer remains very weak. The jobs situation, while slowly improving, is still dismal.”
The Commerce Department said Thursday that retail sales fell 0.1 percent last month. Economists had expected a gain of 0.7 percent.
While autos, helped by the start of the Cash for Clunkers program, showed a 2.4 percent jump - the biggest in six months - there was widespread weakness elsewhere. Gasoline stations, department stores, electronics outlets and furniture stores all reported declines.
The July dip was the first setback following two months of modest sales gains. Excluding autos, sales fell 0.6 percent, worse than the 0.1 percent rise economists had forecast. Furthermore, excluding both auto and gas purchases, retail sales fell 0.4 percent - the fifth straight monthly decline.
Households are working to pay down debt and add to savings; longer-term trends along with little job growth make it “probable that the U.S. consumer will not be much of a help during the early stages of the economic recovery,” Joshua Shapiro, chief U.S. economist at consulting firm MFR Inc., wrote in a note to clients.
The Labor Department said initial claims increased to a seasonally adjusted 558,000, from 554,000 the previous week. Analysts expected new claims to drop to 545,000, according to Thomson Reuters.
“There is really no positive spin to put on these numbers,” Jennifer Lee, an economist with BMO Capital Markets, wrote in a research note. “The U.S. consumer remains very weak. The jobs situation, while slowly improving, is still dismal.”
The Commerce Department said Thursday that retail sales fell 0.1 percent last month. Economists had expected a gain of 0.7 percent.
While autos, helped by the start of the Cash for Clunkers program, showed a 2.4 percent jump - the biggest in six months - there was widespread weakness elsewhere. Gasoline stations, department stores, electronics outlets and furniture stores all reported declines.
The July dip was the first setback following two months of modest sales gains. Excluding autos, sales fell 0.6 percent, worse than the 0.1 percent rise economists had forecast. Furthermore, excluding both auto and gas purchases, retail sales fell 0.4 percent - the fifth straight monthly decline.
Households are working to pay down debt and add to savings; longer-term trends along with little job growth make it “probable that the U.S. consumer will not be much of a help during the early stages of the economic recovery,” Joshua Shapiro, chief U.S. economist at consulting firm MFR Inc., wrote in a note to clients.
The Labor Department said initial claims increased to a seasonally adjusted 558,000, from 554,000 the previous week. Analysts expected new claims to drop to 545,000, according to Thomson Reuters.
