Market Mover Friday: May Retail Sales drop 1.2% (forecast was for a gain of .2%)
So much for Gentle Ben’s testimony this week …
In a setback for the U.S. economic recovery, retail sales unexpectedly (-haha I think of Ed at HotAir every time they say this now!-MiM ) fell hard in May as consumers pulled back their spending on things from cars to clothing.
Retail sales tumbled 1.2%, the Commerce Department said Friday. Economists surveyed by Dow Jones Newswires were expecting a 0.2% increase. The decline was the biggest — and the first — since September 2009, when sales fell 2.2%….
What Ben said:
…The disappointing report conflicted with remarks this week by Ben Bernanke. The Federal Reserve chief, testifying to Congress, said consumer spending and company investments are picking up the baton from fading government stimuli in lifting the economy.
Over the past year, demand in the U.S. has been subsidized by such things as the home-buyer tax credit, the “cash-for-appliances” rebates, and the “cash-for-clunkers” program created to spur car purchases.
But Mr. Bernanke cautioned that consumer spending, a key engine for the economy, is likely to grow at a moderate pace due to persistently high joblessness and tight lending.…
Gee ya think?? Consumers may spend less due to JOBLESSNESS and TIGHT LENDING?! HOOCOODANODE!!!!
Song Lyrics:
My wife has a charge card.
Til I got it the other day.
I owe five hundred dollars.
That’s just for yesterday.
I said, “Honey, here’s a present.
Go out an shop around.
Get a couple a-dresses.
An browse around downtown”.
She did just what I told her.
Bought one, two or three.
Then came home lookin’ silly.
Makin’ goo-goo eyes at me.
Mastercharge, (mastercharge).
I’m bringin’ back her card.
Mastercharge, (mastercharge).
I’m bringin’ back her card.
Mastercharge (mastercharge).
I’m bringin’ back her card.
Moderate in the Middle 