Friday, June 11, 2010

Retail sales unexpectedly slump

Always unexpectedly. Always. Because this is a recovery. Don't you expect things to get better in recovery? All you have to do is click your heals three times, and say, "There's no place like Amurr'ca," and everything will magically return to "normal".

    Reuters -

    Sales at U.S. retailers unexpectedly fell in May for the first time in eight months, but a jump in consumer sentiment to a near 2-1/2 year high in early June tempered fears of a slowing economic recovery.

    The drop in sales reported by the Commerce Department on Friday reflected weak gasoline prices and the end of a home buyer tax credit that had boosted sales of building materials.

    Analysts said the underlying trend of steadily advancing consumer spending was intact -- despite some recent data that suggested a slowing of the recovery -- and there was little risk of the economy slipping back into recession.

    "We have placed a double-dip in the U.S. for a long time at 15 percent and that is still where we are. The most likely scenario is the economy continues to grow at a 3-percent pace," said Michael Strauss, chief economist at Commonfund in Wilton, Connecticut.

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