Consumer spending rises 0.4 percent in April

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investorzzo
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Consumer spending rises 0.4 percent in April

The Commerce Department said Friday that retail sales rose 0.4 percent last month, better than the 0.2 percent increase economists had expected but far below the 2.1 percent surge in March. Excluding autos, retail sales were up 0.4 percent, matching expectations.

http://finance.yahoo.com/news/Consumer-spending-rises-04-apf-1906896834....

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investorzzo
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Re: Consumer spending rises 0.4 percent in April

src="http://us.bc.yahoo.com/b?P=zFwyzkPDkjl1LtYlSSQO.gGnuE3b0UvtVEAACKRz&T=1d61rt4or%2fX%3d1273844800%2fE%3d2142203389%2fR%3dfin%2fK%3d5%2fV%3d2.1%2fW%3dH%2fY%3dYAHOO%2fF%3d2050075884%2fH%3dY29udGVudD0iZmluYW5jZTtyZWZ1cmxfZmluYW5jZV95YWhvb19jb20iIHJlZnVybD0icmVmdXJsX2ZpbmFuY2VfeWFob29fY29tIiBzZXJ2ZUlkPSJ6Rnd5emtQRGtqbDFMdFlsU1NRTy5nR251RTNiMFV2dFZFQUFDS1J6IiBzaXRlSWQ9IjMwMDMwNTEiIHRTdG1wPSIxMjczODQ0ODAwNjYwODUyIiB0b3BpYz0iaW50ZXJuYXRpb25hbDs7cmVmdXJsX2ZpbmFuY2VfeWFob29fY29tIiA-%2fQ%3d-1%2fS%3d1%2fJ%3d1093C343&U=12bfc8at4%2fN%3dTsgROGKJiSk-%2fC%3d-1%2fD%3dNT1%2fB%3d-1%2fV%3d0">

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wildjo
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Re: Consumer spending rises 0.4 percent in April

Is the consumer spending stat corrected for inflation?  Not really an increase in consumer spending, if the consumers are buying the same (or fewer) goods, but at a higher price.

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docmims
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Re: Consumer spending rises 0.4 percent in April
wildjo wrote:

Is the consumer spending stat corrected for inflation?  Not really an increase in consumer spending, if the consumers are buying the same (or fewer) goods, but at a higher price.

I don't think it is.  Also, it only measures stores that are still in business and throws out those that went bankrupt, ie a "survivor" bias.
For those who have wondered, here’s how the Retail Sales numbers are generated:(this is from nathan's economic edge):

The retail sales report is released by the U.S. Census Bureau every month on the 13th day, or on the nearest date if the 13th is a holiday. The report covers the previous month’s developments, and is anticipated eagerly by both economists and traders.

The data included in the release is calculated from the dollar-value of merchandise sold by a sampling of point-of-sale businesses, and other non-store retailers such mail catalogues and vending machines. The Census Bureau sends out questionnaires to approximately 5000 firms across the U.S. in order to measure the retail sales volume which corresponds to about 65 percent of the total sales estimate. The data is not adjusted for those firms which do not respond to the questionnaire. Also, due to the small sampling size, there is a significant sampling error involved in the numbers released with the report.

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wildjo
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Re: Consumer spending rises 0.4 percent in April

Lol.  "vending machines"?  Are the joking?

I can't see how the increase in vending machine sales indicates an improved economy.

There seems to be no evert to distinguish quality from quantity, even assuming they got the quantity metrics right.

I imagine more guns, ammo, and freeze dried food sales would simply mean an improving economy to the measurers.  Means something totally different to me.

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wildjo
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Re: Consumer spending rises 0.4 percent in April

Lol.  "vending machines"?  Are the joking?

I can't see how the increase in vending machine sales indicates an improved economy.

There seems to be no evert to distinguish quality from quantity, even assuming they got the quantity metrics right.

I imagine more guns, ammo, and freeze dried food sales would simply mean an improving economy to the measurers.  Means something totally different to me.

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docmims
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Re: Consumer spending rises 0.4 percent in April

I believe the economic "surge" is due to excess cash laying around, because people are not paying their mortgages and using the mortgage money for discretionary spending. Wink

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