U.S. Economy: Sales Unexpectedly Decrease as Job Losses Mount

U.S. Economy: Sales Unexpectedly Decrease as Job Losses Mount

www.bloomberg.com

Aug. 13 (Bloomberg) -- Sales at U.S. retailers unexpectedly fell in July, raising the risk that consumers will keep cutting back as job losses mount and temper a recovery from the worst recession since the 1930s.

Purchases decreased 0.1 percent, the first drop in three months, as shrinking demand at department stores such as Macy’s Inc. and Wal-Mart Stores Inc. overshadowed a boost from the cash-for-clunkers automobile incentive program, Commerce Department figures showed today in Washington.

(visit the link for the full news article)

Seriously what do people expect? I mean we are hemorrhaging jobs left and right and some wonder why the economy is faltering?

I'm reading how the present administration wants to help create jobs. We can't let GM fail. So they spend BILLIONS of OUR Tax Dollars on GM. Then they turn around and offer it to the highest bidder. Then Sales sky rocket in GM's Chinese sales. Then they shut down even more factories here in the states. All the while they say they need to expand and get Exports up.


And people wonder where all the jobs went?


GM's China Car Sales Rise 78%

BEIJING -- General Motors Corp. said Monday its sales in China surged 77.7% in July from a year earlier to 144,593 vehicles, a record for the month in the company's second-largest market.

"This was GM China's best July ever, extending an uninterrupted series of single-month sales records that started in January 2009," GM said in a statement.

China, which overtook the U.S. in January as the world's largest auto market by sales volume, is playing a key role in GM's recovery after it emerged from bankruptcy protection last month.

The company's sales in China during the January-July period rose 42.8% from a year earlier to 959,035 units. GM didn't provide year-earlier figures. It sold 143,294 vehicles in China in June.

GM buyout offers falls short of goal, layoffs loom

DETROIT — About 6,000 General Motors Co. blue-collar workers have taken the latest round of early retirement and buyout offers, but it fell short of the company's goal, meaning more layoffs are likely.

GM has about 54,000 factory workers and wants to end the year with 40,500, a cut of about 13,500. Monday's report means that about 7,500 too few workers took the offers, setting the stage for more layoffs.

The automaker announced in June and July that it would close 15 U.S. factories employing about 22,000 workers by end of 2012.

www.bloomberg.com
(visit the link for the full news article)

reply to post by SLAYER69

I mean we are hemorrhaging jobs left and right and some wonder why the economy is faltering?

Don't worry, the healthcare bill can take care of hemorrhaging. Unfortunately, it doesn't take care of the economy and the lack of jobs.

One has to wonder why Congress is taking up so much time over healthcare and spending very little time in addressing the economy.

The stimulus plan alone will not do the trick IMO.

reply to post by jam321


Well I guess as we finish the massive free fall and hit bottom it will eventually equal out. As our income falls to nothing we can survive on all the Cheap Chinese made products at the one dollar stores.

Actually is worst that it seems after all they were expecting a boost from the back to schools sales children do need clothes every year as they out grow their old clothes.

But I bet that the second hand stores did very well.

At least in my neck of the woods was booming.

reply to post by marg6043


You may be right. ChinaMart showed flat sales.
UPDATE: Wal-Mart 2Q Profit Flat On Lower Sales; Shares Gain

"The consumer mindset has changed and they are very smart about how they purchase because of where they are financially," said Charles Holley, Wal-Mart's treasurer, in an interview with Dow Jones Newswires

Wal-Mart's same-store sales dropped 1.2%, when the retailer had projected a flat to up 3% showing. The figures reinforce the fact that retailers are not recovering as quickly as other areas of the economy.

reply to post by SLAYER69


I agree, I was flabbergasted when I saw those news that even Wal-Mart was having a littler less than expected sales.



That means things are very bad for the consumers right now.

In my neck of the woods all those employees that were released from Cooper Tires ran out of the separation pays already so now is either the unemployment or something else.

Originally posted by jam321
reply to post by SLAYER69

 

I mean we are hemorrhaging jobs left and right and some wonder why the economy is faltering?

Don't worry, the healthcare bill can take care of hemorrhaging. Unfortunately, it doesn't take care of the economy and the lack of jobs.

One has to wonder why Congress is taking up so much time over healthcare and spending very little time in addressing the economy.

The stimulus plan alone will not do the trick IMO.

That's my guess as well. Just like how JFK touted the space program as some magical fix-all, I think the gubmint will say universal health care (federally controlled) will fix the economy. They don't want to pass this whole health care deal right now because elections don't take place for a couple years.

Originally posted by SLAYER69

U.S. Economy: Sales Unexpectedly Decrease as Job Losses Mount

www.bloomberg.com

Aug. 13 (Bloomberg) -- Sales at U.S. retailers unexpectedly fell in July, raising the risk that consumers will keep cutting back as job losses mount and temper a recovery from the worst recession since the 1930s.

Purchases decreased 0.1 percent, the first drop in three months, as shrinking demand at department stores such as Macy’s Inc. and Wal-Mart Stores Inc. overshadowed a boost from the cash-for-clunkers automobile incentive program, Commerce Department figures showed today in Washington.

(visit the link for the full news article)

How is it unexpected?????

Job less everywhere in this country and them losing sales is unexpected?

What kind of ignorant douches do they have running these places?

reply to post by LucidDreamer85


Well you have to remember that the Cheerleaders in Washington have been using the propaganda machine to claim that the recession is over.

So they can not come out and claim that they knew already, they have to claim surprise

the sad thing is that many will believe it.

reply to post by LucidDreamer85


I know...


The headline should read something like this.

You're broke film at 11.

[edit on 13-8-2009 by SLAYER69]

The Halloween candy is out at my local grocery stores.

It is interesting.
Now the obsession of the week or weeks in the media and government is this healthcare debate which isn't even anything to talk about yet because there are few specifics!
Numero Uno priority should be getting the economy on track without relying on government spending for a short term boost.
Between the misinformation, disinformation, and sensationalism spewed out by the so-called 'news' in the U.S. now, I feel like our country is like a dumb fly on a leaf unaware that a chameleon is preparing to zap it with it's tongue - good night Irene! It's pathetic. Would you have ever thought that the U.S. would be in a predicament like this in every way, shape, and form?
Look at how the media in particular, plays the left-wing/right wing/"divided we fall" card, pitting Dems Vs. Repubs - and all the suckers who fall for it.
I don't get it man, I really don't

I do not see us getting out of this mess (aggregate "messes").
Oh, I like how some group of economists is ready to declare the recession over - of course, they will intentionally omit that we're ready to enter Depression and with the Fall approaching and then the holidays that will seem clear to most.
Let's face it, when you're a politician, economist, a radio or tv talk show host, or a top dog in corporate, things are never bad economically.

[edit on 13-8-2009 by TypeSH2001]

Unexpectedly?

Where have they been?

The truth is that they can't fully hide the numbers anymore, or continue to sugar coat everything for MSM regurgitation on the public.

If I seem frustrated or angry, it is because I personally witnessed 47 people get laid off today from a company that will completely shut down at the end of the month... Those 47 people have taken cuts in pay, benefits, and hours just to keep their jobs, some even worked off the clock at times without pay.

I was in Arizona on Monday and it is even worse there. The state will be deep in debt without any lending from the banks by October.

I have literally traveled coast to coast and many points between in the last month, and despite of the MSM news reports I haven't seen it getting better anywhere, in fact all I have seen is it is getting much worse.

All of this is going on while the government has raided the treasury and wasted trillions, mainly on the elite... It has done nothing to help the people.... And they wonder where all of the anger that fuels protests against more costly legislation comes from.

Wake up America, look around you.... You could be next to be laid off.

If you are, try to find a job... Any job. Some places have as many as 500 applicants now showing up for part time positions.



Damn the people, expand the government.

[edit on 13-8-2009 by Walkswithfish]

Unexpectedly?

Right...

Ya know, I dropped something and it unexpectedly fell right to the ground. Duh!

Unexpected? I run and small business and sales over the last month have been dismal. The people running projections should get in touch with the average business owner because this was not unexpected at all. Sure goldman made massive profits gambling on the stock market with taxpayer money but for those of us selling tangible goods it has not been a good month.

Guns or Butter....We can not afford either. People are more and more on edge.

Remember that scene from the movie Network? Well the windows are starting to open, one by one. We're mad as **** and we aren't going to take it anymore.

reply to post by Jacob08


I hear that, this last month I finally felt the effects. There has been a noticeable drop in my customers in my shop..

Somebody quick release a new virus.

reply to post by marg6043


Looks like more and more kids will be using their book bags and pens for another year haha...

An interesting tidbit about back to school sales.. Many if not all retailers offer some goods for less than what they paid for.. to get them in the store. The rest of the supplies would be marked down to compete with other stores so as the profit margin is slim. The idea being, make basics like note books, pencils, crayons, and pens cheap, the parent will stay in the store to buy more expensive items like book bags, shoes, clothes etc. If the consumer is cash strapped, some of those more durable goods will be re-used.. and the store looses profit, even if sales are higher than normal.

Incidentally.. this was the same thing that happened last Christmas, consumers targeted out the best deals, got them, and fled the store. Results were the worst Christmas sales season on record (until this coming Christmas).

This news is my bad, guys. You see, every time I make a quasi-optimistic statement like this one; we get a new wave of bad news. The economy likes to make me look stupid, it seems.

Sorry, guys.