US retail sales figures may further tank US stock market tomorrow
US retail sales figures may tank US stock market tomorrow. Retail sales slowed down in August compared to the previous two months
Economists said this week that U.S. retail sales in August have risen at the slowest pace in three months, due to limited job and income growth.
Bloomberg News holds that 0.2 percent gain would follow a 0.5 percent rise in July.
Retailers J.C. Penney Co. and Target Corp. (TGT) say that a stagnant labor market makes sales gains difficult. Sean Incremona says, “Consumers are reluctant to spend on anything outside of what they need, Policy support is going to be needed.”
Economists’ report in the retail report also indicates that purchases except automobiles rose by 0.2 percent in August following a 0.5 percent rise in July. Light trucks and cars sold at a seasonally adjusted annual rate of 12.1 million in August, falling from an initial pace of 12.5 million early this year.
Labor Department figures showed payrolls to be unchanged last month and a stagnant 9.1 unemployment rate.
Obama and his crew plan to provide support in the crisis. Treasury Secretary Timothy F. Geithner thinks the Congressional approval “would dramatically reduce the risk of a long period of much weaker growth.”
Economists in the Bloomberg survey projected that the preliminary index of consumer sentiment dropped to 56.6 from 55.7 in the last month.
Douglas Scovanner, chief financial officer of Minneapolis-based Target said, “What we’re experiencing now is what we expect for quite some time…This is a challenging environment.”
However, luxury chains are doing well. Saks Inc. (SKS) and Nordstrom Inc. (JWN) reported sustained demand.
The Standard & Poor’s Supercomposite Retailing Index has dropped 9.3 percent ever since July 15, whilst the broader S&P 500 Index (SPX) fell 12 percent through the same period.
Output at mines, factories and utilities improved only 0.1 percent in August, the minimum gain in 28 weeks.
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