NYT/AP: Retail Sales Plunge in August (before Katrina)

[DeepModem Mom]

Retail Sales Plunge in August
By THE ASSOCIATED PRESS
Published: September 14, 2005


WASHINGTON (AP) -- Retail sales plunged in August by the largest amount in nearly four years, evidence that the economy was weakening even before Hurricane Katrina struck.

The Commerce Department reported Wednesday that total sales fell by 2.1 percent last month, double the decline that analysts had been expecting. The weakness came from a big 12 percent drop in sales of autos. Excluding autos, retail sales rose 1 percent, but much of that strength reflected a rise in gasoline prices.

Economists believe that Katrina, the worst natural disaster to hit the United States, could trim economic growth by a full percentage point in the second half of the year as soaring gasoline prices force consumers to cut back spending in other areas.

The 2.1 percent drop in total sales last month was the largest decline since a 2.9 percent plunge in November 2001, the period following the 2001 terrorist attacks.

The worry is that consumer confidence could be jolted this time around by soaring energy prices and an expected wave of Katrina-related job layoffs....


http://www.nytimes.com/aponline/business/AP-Economy.html?hp&ex=1126756800&en=4767d54bb7f49a76&ei=5094&partner=homepage

[htuttle]

1. Didn't they tell us the economy was 'booming' before Katrina?

[ChairmanAgnostic]

4. as in a deadly cannon

with the casualties yet uncounted.

[SCDem]

2. God the irony and misplaced worry

I think of the West Wing and the quote "It's the fall that's gonna kill you."

The worry is that consumer confidence could be jolted this time around by soaring energy prices and an expected wave of Katrina-related job layoffs....

Shouldn't the worry be about the soaring energy prices and the fact that people are being layed off.... not the consumer confidence.

[halobeam]

3. Is it the right time to buy a car yet if you really need one?

or should people wait longer because prices will go further down in the coming months. I bet the auto industry is putting on some major sales.

The drop of 2.1%, the 9/11 commission follow up report, the massive murderous neglect by Fed. govt of the people of the gulf coast, are not doing this admin. any favors. Bush speaks tomorrow night. Think he'll discuss this? LOL Fat freakin' chance, I say. Everything is getting better, he'll say.

Man is it ever such difficult times in Amerika.

[4dsc]

5. Gas or clothes

I public has made their choice and they would rather drive their car than buy retail!!

Just wait until the vast majority of American start paying much HIGHER winter heating bills!! I don't think the Christmas shopping season will be very bright!!

[marmar]

6. Failed military, failed emergency response, failed economy...

failed presidency. And yet there are still millions of sheep who still defend this jackass. I cannot believe the last five years actually happened.

[natrat]

10. unfortunatly to some this is sucess

less civil rights
more concentration of wealth
use of the military domestically
more cuts to welfare programs
a complicit and compliant media
free reign/unaccountability of the military

this is far from failure for some

[Delphinus]

11. Thanks, natrat

for that compilation. You are quite correct. In some ways, this is a massive success for tptb and the elites.

[Missy M]

7. The economy of the 'elite' and rich has been doing well......

at the expense of the majority of American workers, at all levels. Now these short term, quarter to quarter, 'thinking' people are about to get a dose of their own medicine. When the American consumer lives 24/7 waiting for their pink slip to arrive or their work facility to be moved to China, the consumer spending will continue to decrease. Add in the spiraling energy cost increases, ever increasing health care costs and contributions and a credit card industry that has been given a license to run amok and crush the American consumer; there are all the elements for an economic disaster. We are there now!!!!

[Boredtodeath]

8. During Back to School shopping?

Think about it folks - besides Christmas, this is the biggest retail season.

Sales dropped like that during Back to School?????????

[WePurrsevere]

9. That was my first thought as well....

however I have a few friends that were selling on eBay in August and their sales were up in August which is NOT the norm there.

If I recall correctly the Commerce Dept doesn't include online sales in it's figures so perhaps more folks are shopping online in general (as well as eBay) to save money and gas?

[truthisfreedom]

12. ya think? it's almost like they fired up the HAARP machine just to cover

up the hugely bad numbers...