Retail sales gained a seasonally-adjusted 2.7% in August, according to the U.S. Department of Commerce. This follows a 0.2% decline in July. The August results beat analyst expectations soundly, lending support to talk of a recovery. The Cash for Clunkers program is cited as contributing to August sales.

Without autos, sales increased 1.1%, still ahead of the anticipated 0.4% gain. Take gas out of the measure, as well, and retail sales grew 0.6%.

Inventories fell in July, for the twelfth month in a row, with the 1% decline a tad higher than the 0.9% anticipated by many economists.

Continue reading Retail sales hint at jobless recovery

Retail sales hint at jobless recovery originally appeared on BloggingStocks on Wed, 16 Sep 2009 12:00:00 EST. Please see our terms for use of feeds.

Markets throughout the world have been rallying on the expectation that the world recession is ending. Lurking underneath the surface are some disturbing events.

Japan is in a sharp deflationary spiral. The Corporate Goods Index, which measures wholesale prices, plunged 8.5%, this after a 6.7% drop in June. This is the fastest drop on record.

Let's look at other deflationary numbers. Import prices fell 33.3% in yen terms and 26.5% on a contract-currency basis. Export prices fell 15.3% in yen terms and 6.5% in contract currencies.

Continue reading Japan's deflationary spiral: Wholesale prices plunge 8.5%

Japan's deflationary spiral: Wholesale prices plunge 8.5% originally appeared on BloggingStocks on Wed, 12 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

New jobless claims jumped unexpectedly last week by 32,000 to 637,000, much worse than economists predicted. And we have another disappointing number: Continuing claims for unemployment rose to a record high of 6.56 million, up from 6.34 million the previous week. The insured unemployment rate rose by .1% to 4.9%.

Obviously, these numbers are throwing cold water on any claims of reaching bottom. Last week, the Labor Department reported that unemployment rose to 8.9%, the highest level in 25 years.

U.S. wholesale prices also rose in April, led by rising food costs. This is a weird fact because it indicates that we are not spiraling into deflation, but it doesn't help the average person. The increase was led by the price of eggs, beef and milk. The price of gas rose by 2.6% but residential fuel costs eased.

Continue reading U.S. jobless claims rose 32,000 to 637,000

U.S. jobless claims rose 32,000 to 637,000 originally appeared on BloggingStocks on Thu, 14 May 2009 11:30:00 EST. Please see our terms for use of feeds.

Continue reading August PPI decline seen helping Fed keep interest rates low

August PPI decline seen helping Fed keep interest rates low originally appeared on BloggingStocks on Fri, 12 Sep 2008 11:00:00 EST. Please see our terms for use of feeds.

The Wall Street Journal (subscription required) reports that producer prices launched upward at a 1.2% monthly rate in July. The rise in the PPI -- which was 0.7 percentage points faster than the 0.5% rate economists expected -- was the result of rising wholesale prices for energy spreading to "automobiles, prescription drugs and capital equipment."

Since the price of oil has dropped 24% from $147 to $112, should we all be relieved that July's number is a temporary blip? Let's hope so, because if not, rising wholesale prices make it even harder for businesses to make a profit when consumer demand is weak.

These higher wholesale prices mean that businesses have two options to maintain profits: keep prices the same but cut costs in other areas by finding productivity improvements, cutting back on payrolls and salaries and the likes, or raise prices to offset those rising costs.

Continue reading July producer prices soar at 14.4% annual rate -- highest in 27 years

July producer prices soar at 14.4% annual rate -- highest in 27 years originally appeared on BloggingStocks on Tue, 19 Aug 2008 09:15:00 EST. Please see our terms for use of feeds.