NYT/AP: Retail Sales Excluding Autos Post Better-Than-Expected Gains

[DeepModem Mom]

Retail Sales Excluding Autos Post Better-Than-Expected Gains
By THE ASSOCIATED PRESS
Published: November 15, 2005


WASHINGTON (AP) -- Retail sales performed far better than expected in October as consumers took encouragement from falling gasoline prices to head back to the shopping malls.

The Commerce Department reported that overall sales dipped a slight 0.1 percent, but that was significantly better than the 0.7 percent decline economists had been expecting. The weakness came from a big 3.6 percent drop in auto sales, which have weakened with the removal of attractive discounts automakers had used during the summer.

Excluding autos, retail sales rose a solid 0.9 percent last month. The strength in sales last month was led by big gains at specialty clothing stores and department stores, lifting the outlook for the upcoming holiday sales season.

In other economic news, the Labor department reported that wholesale prices rose by 0.7 percent in October after an even sharper 1.9 percent increase in September.

However, excluding food and energy costs, so-called core inflation fell by 0.3 percent in October, the biggest one-month decline in more than two years....


http://www.nytimes.com/aponline/business/AP-Economy.html?oref=login

[jayfish]

1. Happy Days Are Here Again!

Oh, sales actually declined .1%? George Orwell would be aghast.

Jay

[readmylips]

2. Dealers giving away piled up stocks of cars....

We bought a new/used car way below the asking price. It doesn't mean the dealer does not make money. It doesn't make as much.

[UpInArms]

3. That was a very misleading article - all increase was at the gas pump

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B7000E9B9-837E-4576-A26E-EB37234551D5%7D&

WASHINGTON (MarketWatch) - Falling sales of motor vehicles and gasoline dragged U.S. retail sales down in October to an overall decline of 0.1%, the Commerce Department said Tuesday. Auto sales posted a 3.6% decline in October, while consumers bought 0.8% less gasoline than in September. Excluding autos, retail sales rose 0.9%. Minus gasoline, retail sales were flat. Economists surveyed by MarketWatch were expecting retail sales to decline by 0.6%. Excluding autos, economists predicted sales would climb by 0.3%.

[htuttle]

4. I don't know about the rest of you...

...but after the last few years, I've come to regard Commerce Department reports about the 'economic recovery' with the same skepticism I had for Soviet Politburo grain production reports.

I just don't believe a damn word they say anymore.

[Tempest]

5. Winter clothes purchases

Once the initial purchases for winter are done, retail sales will drop again.