Retail sales fall unexpectedly; jobless claims up

[brentspeak]

Something tells me this isn't exactly the kind of "lagging indicator" some promised there would be...

http://finance.yahoo.com/news/New-jobless-claims-rise-more-apf-1551827594.html?x=0&.v=6

Retail sales fall unexpectedly; jobless claims up

Source: Associated Press

By Martin Crutsinger and Christopher S. Rugaber, AP Economics Writers , On Thursday January 14, 2010, 3:50 pm EST

WASHINGTON (AP) -- Retail sales unexpectedly fell in December, leaving 2009 with the biggest yearly drop on record and highlighting the formidable hurdles facing the economy as it struggles to recover from the deepest recession in seven decades.

In another disappointing economic report, the number of newly laid-off workers requesting unemployment benefits rose more than expected last week as jobs remain scarce.

Still, many economists, puzzled by the retail sales decline that follows reports from retailers of brighter holidays, cautioned that the December figures don't necessarily signal a big consumer pullback and could be a blip.

Taking November and December figures together provides a picture of modestly positive spending, they said, but the monthly drop underscores how tentative the economic recovery remains, given all the headwinds facing consumers...

[glowing]

1. Did these economists think consumers were going to go out and buy a bunch

of overpriced chinese crap on a 30% interest card? Or that those with reduced hours at work and the unemployed would be lining up early and often for the newest gadget or gizmo? Hello, unemployment up, spending down. Duh.. real people actually have to pay their bills.. only Wallstreet got a bailout.

[AndyA]

2. Thank you!

The economists, retailers, and this administration need to grab a clue.

People aren't going to buy anything they can't pay cash for right now. That means it was a cheap Christmas for many. Purchases that might have been charged in the past with a lower interest rate and paid off over the next 2-3 months weren't made this year.

Once again, America's banks are WORKING AGAINST ECONOMIC RECOVERY by jacking up rates and fees to pay bonuses. This just hurts retailers and everyone else.

The bankers caused this mess. Obama needs to put on a big shoe and kick their sorry butts to the curb. Until these outrageous interest rates and fees are addressed, any recovery will be slow and unsure.

I charged ZERO this year for the holidays. I'm sure there are many more in the same situation.

[Zynx]

3. Jobless claims are a volatile series and then trend has been sharply down.

The retail sales report doesn't make a whole lot of sense since we know that auto sales increased a fair amount between November and December. However, for the fourth quarter retail sales were pretty good.

[golfguru]

4. Poll : who benefits from government response to financial crisis most

[depakid]

5. If those numbers are remotely close to accurate

Obama and the Dem's upcoming sell out to Wall Street on financial regulation (and accountability) is going to leave then with few compelling arguments for retaining the majority next year.