Stimulus checks......not so stimulating, apparently......

[marmar]

Retail Sales in U.S. Rose Less Than Forecast in June (Update1)

By Shobhana Chandra

July 15 (Bloomberg) -- Retail sales in the U.S. rose less than forecast in June, a sign the boost from the tax rebates may already be fading.

The 0.1 percent increase was the smallest since February and followed a 0.8 percent gain in May that was less than previously reported, the Commerce Department said today in Washington. Purchases excluding gasoline dropped.

The report adds to concern that households may retrench as home values fall, fuel prices surge and unemployment climbs. Consumers last month shopped mainly at discounters including Wal-Mart Stores Inc. and Costco Wholesale Corp. to stretch the buying power of the stimulus checks, industry reports showed.

``The U.S. consumer is facing serious headwinds,'' Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York, said before the report. ``Household buying power this year will be severely crimped by decelerating cash flow, tighter lending standards and reduced homeowners' equity.''

A separate report from the Labor Department showed prices paid to U.S. producers rose for a sixth month in June. The 1.8 percent increase was the biggest since November and followed a 1.4 percent jump the previous month.

Economists' Estimates

Retail sales were projected to rise 0.4 percent after an originally reported 1 percent gain the prior month, according to the median estimate in a Bloomberg News survey of 81 economists. Forecasts ranged from a drop of 0.4 percent to a gain of 1.5 percent.

Sales excluding automobiles increased 0.8 percent. They were forecast to increase 1 percent from the prior month, according to the survey median. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aGfLp7KUSfUA&refer=home

[bdamomma]

1. another failure for this poor excuse of a human being *

his band aid of giving Americans scraps did not do anything for the failing economy and the deteriorating US dollar.

[marmar]

2. Or perhaps it was all intentional.....

Psychopaths are like that.

[knitter4democracy]

3. Judging from the sales and ads around here, I'd have to agree.

Stores are a lot more empty than usual, and many people I know used those checks to pay down debt, not buy anything (or maybe buy something small they'd had their eye on and then use the rest to pay for home repair). The ads are getting more blatant and in-your-face, and it seems like everything's on sale all the time now.

[gatorboy]

4. You should see Fannie Maes!