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Consumer Spending On The Rise Deceiving The Market

EE-Reporter — Mon, 03 May 2010 18:30:29 +0000

Consumer spending has been increasing in recent months. However, that rise will be subdued as stagnant pay and weak hiring remains. Reports are indicating that consumers are tapping into their saving for spending, rather than receiving an increase in pay to fuel their spending habits. Economists have been hinting that the economic recovery would be hampered if employers don’t boost pay and increase hiring.

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The Average American Family’s Finances

EE-Reporter — Fri, 30 Apr 2010 16:27:41 +0000

Check out this informational chart from VisualEconomics. It’s a very interesting look into an average American family’s finances. Why are they in this mess? What are your thoughts?

Source: www.visualeconomics.com

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Retail Sales Surge In March

EE-Reporter — Wed, 14 Apr 2010 17:24:08 +0000

Brief rundown;

Retail sales increased 1.6% from February to March
February was reported at $355.5 billion
March was reported $363.2 billion

U.S Census Bureau Report:

“The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for March, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $363.2 billion, an increase of 1.6 percent (±0.5%) from the previous month and 7.6 percent (±0.5%) above March 2009. Total sales for the January through March 2010 period were up 5.5 percent (±0.3%) from the same period a year ago. The January to February 2010 percent change was revised from +0.3 percent (±0.5%)* to +0.5 percent (±0.3%).”

This graph shows the monthly retail sales.

Graph Source: www.calculatedriskblog.com

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Retail Sales Rise In February

EE-Reporter — Sun, 14 Mar 2010 19:29:55 +0000

Brief rundown;

Retail sales increased 0.3% from January to February
Jan was reported at $354.3 billion
February was reported at $355.5 billion

U.S Census Bureau Report:

“The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for February, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $355.5 billion, an increase of 0.3 percent (±0.5%)* from the previous month and 3.9 percent (±0.5%) above February 2009.”

This graph shows the monthly retail sales.

Graph Source: www.calculatedriskblog.com

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January Retail Sales Rise 0.5%

EE Economist — Mon, 15 Feb 2010 19:13:16 +0000

Total retail sales increased 0.5% in January up 4.7% from January 2009, reported by the Commerce Department. Additionally December revised data indicated stronger spending for December (-0.3% -> -0.2%) and November (1.8% -> 2%).

However, high unemployment and uncertainty in job security in the U.S. has tightened consumer spending.

Here’s a brief rundown of January sales;

Retail & Food Services -> 0.5%
Auto Sales -> -0.1%
Department Stores -> 1.5%
Electronic/Appliance -> 1.2%
Clothing Stores -> 0.3%

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December Existing Home Sales Declines

EE Economist — Mon, 25 Jan 2010 20:46:44 +0000

NAR Press Release: December Existing-Home Sales Down but Prices Rise; 2009 Sales Up

Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 16.7 percent to a seasonally adjusted annual rate1 of 5.45 million units in December from 6.54 million in November, but remain 15.0 percent above the 4.74 million-unit level in December 2008.

For all of 2009 there were 5,156,000 existing-home sales, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008; it was the first annual sales gain since 2005.

…

Total housing inventory at the end of December fell 6.6 percent to 3.29 million existing homes available for sale, which represents a 7.2-month supply4 at the current sales pace, up from a 6.5-month supply in November.

• On a percentage basis, the 16.7% monthly decline was the largest on record, dating back to 1968;

• Single-family home sales fell 16.8% (SAAR 4.79 million) and are 12.7% above the 4.25 million level in December 2008.

• Single-family sales rose 5.0% to 4,566,000 in 2009.

• First-time buyers purchased 43% of homes, down from 51% in November, according to a NAR survey.

• Median existing-home price for all housing types was $178,300 in December 2009 — a gain of 1.5% higher vs December 2008.

• Total housing inventory at the end of the year was down 6.6% to 3.29 million existing homes for sale — a 7.2-month supply;

• Raw inventory is 11.1% a year ago, the lowest level since March 2006;

Source Reference: NAR, via ritholtz.com

Existing Home Sales – Non Seasonally Adjusted

Graph Source: CalculatedRiskBlog.com

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The Rise Of Consumer Debt

EE-Reporter — Fri, 22 Jan 2010 22:26:47 +0000

Below is the chart of the day via Visual Economics:

It amazing to see the rapid rise in consumer debt. As mainstream attention remains on the housing crisis and loan defaults, its going to be very hard for the market to continue ignoring the current credit crisis.

Click to enlarge

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Surprise Rise In Retail Sales

EE-Reporter — Fri, 11 Dec 2009 16:15:30 +0000

Chart Source: CalculatedRiskBlog.com

Retail sales rose 1.3% for the month of November following a 1.1% gain in October, reinforcing consumer confidence in the market. After the GDP rose 2.8% in the 3^rd quarter Analysts forecasted slow growth for the 4^th quarter and half of the 1^st quarter of 2010. Analysts believe that a double digit unemployment, currently at 10% would weaken consumer spending. Data from the 4^th quarter will be a better indicator to forecast next year. Quick break down of sales for November as follows;

Auto Sales –> +1.6%

Department Store Sales –> +0.7%

Electronic/Appliance Store Sales –> +2.8%

Hardware Store Sales –> +1.5%

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