To counterbalance all the green shoots talk, take a walk on the dark side.
Exhibit 1: Chain store sales declined 5% in May, a significant decline that did exclude giant Wal-Mart (NYSE: WMT). Guess Joe Consumer still doesn't feel up to shopping much. And Wal-Mart said it will stop reporting monthly sales figures, something that many economists and investors find troubling because that will mean they are losing a key indicator on consumer spending.
Exhibit 2: May Non-Manufacturing ISM numbers are showing weakness, according to Mish. That's bad news because the U.S. is increasingly a services economy! For the travel industry (via AnalystBlog), more bad news as weekly average hotel room rates fell to the lowest level of the year -- which is odd because the summer travel season is beginning!
Alex Salkever is Director of Research at Piqqem, a stock prediction community powered by the Wisdom of Crowds.
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Reader Comments (Page 1 of 1)
6-05-2009 @ 6:11AM
al coholic said...
With the official bogus government unemployment number at nearly 10% (most sane people know it is several points higher than that) it whould surprise nobody that vacation travel this year will be anemic.
As for retail, I think I think we all know where former customers of Belks, Macy's, Starbucks, and high priced eateries have gone. Namely to Wal-Mart, Dollar General, Freds, McDonalds, and other low priced places.
Consumer tip: I recently bought 8 pairs of socks at Dollar General for $5 and I swear they are just as good as those high priced ones, but even if they aren't I could replace them 4 times and still be better off than if I had paid retail.
6-05-2009 @ 8:29AM
Donovan said...
The only way for consumers to fight back on the excessively high credit card interest rates were getting hit with, and bring down prices at retail stores, grocery stores, and gasoline. Is to reduce our purchasing, and reduce the use of credit cards for purchases. All of these business depend on consumer spending, in order to stay financially viable. Consumers do have the ability to force business's to reduce prices, and banks to reduce their excessive credit card interest rates. By our own reduction of unnecessary spending, and reduction of credit card use.
6-05-2009 @ 9:59AM
Donovan said...
Yes, the summer vacation and travel season is in fact beginning. However, it doesn't mean you need to spend a small fortune in order to enjoy yourself this summer.
When I was growing up, we went camping, we had family bar-be-ques, block parties, went to the beach, etc. If you have relatives or friends you get along well with. Get together and split the cost of a vacation rental property at the beach, or a resort. Many times its much less expensive to rent a villa, beach house etc. As opposed to paying the cost of staying at a hotel. And lets face it. For what your paying daily for a hotel room. How much time are you really going to spend in your hotel room?
There is really no need to spend a lot of money. In order to enjoy you summer vacation.
6-06-2009 @ 8:19AM
al coholic said...
I guess that work if you brought all home grown food with you, hiked to avoid the $2.50 per gallon gas, and didn't have to borrow any money to go on your trek. No, I think much more likely is the scenerio where people just hang close to home.