I thought our economy was strong as we fight with resolve.
 

http://www.marketwatch.com/news/story.asp?guid=%7BE2D5F2BC%2DE871%2D48BB%2DB513%2D6009DB1E5E2A%7D&siteid=mktw&dist=

Guess not.

Retail sales plunge 2.1% in August
Biggest drop in 4 years; auto sales tumble record 12%
By Rex Nutting, MarketWatch
Last Update: 11:06 AM ET Sept. 14, 2005
E-mail it | Print | Discuss | Alert | Reprint |

WASHINGTON (MarketWatch) -- U.S. retail sales fell 2.1% in August, the biggest decline in nearly four years, as auto sales plunged a record 12%, the Commerce Department estimated Wednesday.
MARKETWATCH TOP NEWS
U.S. stocks mixed; energy supplies, data in focus
Airline sector bucks bankruptcy fears
U.S. August retail sales sink 2.1%, more than expected
Lehman profit surprises with 74% rise
Baidu.com shares tumble on broker valuation concerns
Free! Sign up here to receive our Midday Market Report e-Newsletter!
TRADING CENTER



TRACK THESE TOPICS
My Portfolio Alerts
Column: Economic Report
Create
Get breaking news sent directly to your in-box
Create a Portfolio | Create an Alert

Excluding autos, retail sales increased 1%, with half of the increase due to higher sales of gasoline, reflecting higher prices.

Excluding both autos and gas, retail sales increased 0.5%, with gains across most store types. Read the full report.

Economists were expecting a large decline in retail sales. The average forecast in a MarketWatch survey called for a 1.2% decline. Excluding autos, sales were expected to rise 0.6%. See Economic Calendar.

In July, retail sales increased 1.8%, with sales excluding autos up 0.5%.

Treasurys were nearly flat after the report, with the yield on the 10-year note falling to 4.13% from 4.14% on Tuesday. See Market Snapshot.

Automakers had boosted sales in June and July by offering sweetheart deals, but those gains were reversed in August even though some of the bargains remained..

"After a two-month vehicle shopping spree, American garages are now full," said Leslie Preston, economist for CIBC World Markets.

Retail sales are up 7.9% in the past 12 months. Excluding autos, sales are up 9.4%. Excluding gasoline, sales are up 6%. The figures do not include price changes.

The government could not estimate the impact of Hurricane Katrina on August sales. The storm hit southern Florida before slamming into the Gulf Coast on Aug. 29. The impacted metro areas along the Gulf Coast account for 1.2% of U.S. sales.

The Commerce Department estimated August sales for those companies that were unable to report monthly figures. Such estimations for missing data are routine and are a major reason why the initial retail sales figures often are revised.

In a separate report, the Federal Reserve said industrial production increased 0.1% in August, with Katrina subtracting 0.3 percentage points from growth. See full story.

The August retail-sales report shows U.S. consumers were maintaining robust spending levels despite the large increase in gasoline prices.

"These results cast more cold water on the notion that if nondiscretionary spending on energy swells, it must crimp discretionary spending. It hasn't," said Ken Mayland, chief economist for ClearView Economics. "Consumer spending has continued to advance strongly" even as gas prices have doubled over the past two years.

Since the storm, however, retail-chain stores have reported a softening of demand, which they attribute to the loss of discretionary income from higher gas prices and some consumer caution.

Softness in department stores, restaurants and clothing "suggest higher gasoline prices eroded some categories of discretionary spending in the month," said Joshua Shapiro, chief economist for MFR.

By store type, sales were mixed in August.

Furniture-store sales increased 0.9%, while building-material store sales increased 0.5%. Electronics-store sales rose 0.3%.

Gasoline station sales increased 4.4%.

Sales at general-merchandise stores rose 0.3%, while clothing store sales were flat. Sales at stores offering health and personal care goods jumped 1.2%.

Sales at food stores rose 0.6%, but restaurant sales were flat.

Sales at leisure-time goods stores rose 0.5%.

Nonstore retailer's sales rose 1.8%.

Nothing like the recession Your boy Clinton left us with......that Bush turned around into a strong economy....

:confused: :confused:
Are you sure you haven't met my first wife?

Probibly not...what was her name?

Lee - but I was just thinking, everything that ever went wrong was because I sold her Chevy Nova, and everything that ever went right was because she had great tits. God got even with her though - she's one of those Itialian women that start out perfect, but just never stop growing. I think she must have to buy her bras from a sailmaker.

Biggest I ever had with girlfiriends was Double D....my wifes will be resistant to gravity unlike those mellons...

You know what really stinks. I have BHD's posts blocked I have to still see them when they are part of a reply.

Ick. A total id10T - for sure.

Bot had the best idea for VD and KV. Just use a series of *** to emphasize how strong the standard response should be. This would have saved them so much time typing, and we'd all get the idea.

funny how this guy insists on being a butthead and yet claims to have me on ignore at the same time....

Sounds like mister name caller is a bigger version of what he likes to call others...

Or you can go over to Benzworld......I don't frequent that place very much.

You need to get over there more. The other guy died, and so it's very one-sided and youth oriented now. KV doesn't even try anymore cause there's nobody to duel with. It's kinda like a heavy metal band trying to sing ballads.

I might....its been a while since i was there....

Yea, me too, and it happens with MM's too, which is a true bummer.

Only small minds need to ignore people so they don't have their precious narrow minded ideas disturbed...


Just proves my point about the left.

ignore away....

You blocked MM??? :confused: