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To: RJS1950
When the number of people who are unemployed and ineligible for unemployment rises to the point it is at now, the amount of discretionary income to buy fast food declines.

Sales INCREASED IN THE US by 0.9% when they anticipated a minus .3 decline. So your theory doesn't appear to work in the US.

23 posted on 02/08/2013 7:50:02 AM PST by kabar
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To: kabar

U.S. retail sales rose .3% in November, aided by car sales which is normal for end of year model sales. This offset a 0.3 % decline in October. Department store sales dropped 0.8 percent and general merchandise that includes Wal-Mart and Target fell 0.9 %.

For December, adjusted sales were 0.5% higher which statistically would fall within a margin of error for 0 %.

Spending for 2012 didn’t even equal 2011; unadjusted 2012 at 5.2% which is down from 7.9% overall unadjusted in 2011.

Excluding auto sales which traditionally impact end of year sales, sales rose 0.3% which was slightly above the predicted 0.2% positive forecast (not minus .3%).

It is forecast that spending is unlikely to move upward by much until hiring picks up. Right now, consumer spending which is 70+ % of the economy and the main driver. Overall, the trend is flat and new taxes will put a further strain on consumer spending power. We had the Christmas season spike (such as it was), but it is a new year with new government drains on the economic engine. Overall, I would say the theory still fits but who knows? Miracles do happen.


26 posted on 02/08/2013 8:18:38 AM PST by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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