Skip to comments.Is Consumer Spending Hurting From More Than Bad Weather?
Posted on 02/25/2014 10:38:20 AM PST by John W
The weather may have improved across much of the United States last week, but retail sales did not. Following the release of Januarys retail sales figure from the Department of Commerce on February 14, the concern was that the frigid weather experienced by much of the country that month depressed consumer spending.
Retail sales totaled $427.8 billion last month, a decline of 0.4 percent, while Decembers sales figure was downwardly revised from 0.2 percent gain to a 0.1 percent drop, making January the second consecutive month of negative growth. But while many economists have cited the poor weather as the reason for the low spending numbers, Customer Growth Partners Chief Executive Officer Craig Johnson told Forbes that sales were weak, and not just due to weather. In fact, January produced the worst year-over-year growth since 2009, when the United States economy was in recession.
In other words, both data from weekly measures of U.S. retail sales and the comments of retail industry analysts suggest that underlying economic problems and not merely harsh winter temperatures are the source of retail troubles.
(Excerpt) Read more at wallstcheatsheet.com ...
In my personal experience my spending is focused on keeping warm at this point. However that doesn’t mean the economy would be any better if it were warm.
Has anyone looked into whether Obamacare costs are hitting disposable income/spending.
What's the mantra going to be when May hits and spending is still in the shitter??
It's too warm to be in the malls shopping??
You can count on lots of spinning and diversions by the Democrats to try to avoid the blame. And the MSM will help them.
My personal experience, for whatever that is worth, is that the cost of certain of my prescription drugs (of course those w/o a generic available) has skyrocketed the last three months and the cost of my premiums for my group plan at work increased 100% January 1, 2014. Locally they blame Obamacare for both, but, think it just gives them something to blame in my case.
No, nobody has looked into that.
In the era of Obama, it is not permitted for us to talk about negative impacts of the policies of Obama. Some outside force, such as the weather in this case, will always be to blame for any bad economic news.
I had read a few days ago that if the consumer was really in a position to buy, it would have shown up in higher on-line sales. It did not. Therefore the weather had little or nothing to do with poor retail sales.
“Is Consumer Spending Hurting From More Than Bad Weather?”
I might feel better if it was warmer but the spending on taxes, energy, tuition, insurance & food hurts regardless of the weather.
Commie pink fag occupying the WH.
Is Barrack hurting for excuses as to why his policies and words are hurting simple business decissions?
How could that be? I just saw a new Obamacare commercial where some young chica was bragging that due to subsidies, she was only paying $76 / month.
No money, no spendee.
I’ve wondered about that, but I think its too early for the full economic displacement to be caused by Obamacare to have fully hit yet. Put another way, it would require a great deal of imagination on the part of the average American consumer to think forward to the poverty health care will impose on them, and this in a nation of people, one-fourth of whom believe the sun revolves around the earth.
My read of the situation is that people are really and profoundly cash-short. Traffic at the local Walmart is way, way down and they’ve never been able to move their left over inventory of Christmas toys. I think they’re cash-short for two reasons, one obviously, high unemployment and the other......those who have jobs haven’t seen anything resembling meaningful raises in years.
The policies of our wonderful Republican state government have given Blue Cross pretty much a monopoly in this state.
My premia increased 40% this year, no explanation necessary.
Not necessary when you’re the only game in town.
The mood of the consumer has many facets. This winter is endless, but with plenty of breaks to get to the grocery, local restaurant,bank, drug store. Beyond that, what's the point? And buying for spring? Not even on the radar.
It's the perfect storm. Even if the economy could've absorbed higher health insurance costs, increased food prices/less food stamps and higher utility bills, in many parts of the country the weather gives us no reason to want new stuff. I wonder what February is going to look like, since lots of people spent over two weeks of miserable weather staring at the Olympics for free, instead of spending even a modest about of money to stay entertained.
Oh, another factor....I'm surprised how many people "get it" that it's probably not a good idea to use a credit card when it's not necessary.
“The policies of our wonderful Republican state government have given Blue Cross pretty much a monopoly in this state.”
I kinda doubt that Republicans are blocking other insurance companies from selling policies in your state.
When the Republicans declined Medicaid expansion
BCBS expanded THEIR market to over two-thirds of the state’s.
This includes covering all public parasites. There was no bidding or competition involved, They own NC’s government.
Private insurance NOT of BCBS’s system, costs double this, and these are leaving the state one-by-one.
/NC is the new Florida, and that ain’t good