WASHINGTON—A drop in auto purchases weighed on U.S. retail sales last month, though underlying figures show that consumers picked up the pace of spending on electronics, eating out and some other nonessentials.The analysis at the end of the article has this to say.
Retail sales fell a seasonally adjusted 0.1% in September from a month earlier, the Commerce Department said Tuesday. Economists surveyed by Dow Jones had forecast a 0.1% rise.
(M)ore recently job creation has stalled and consumer confidence has taken a hit, raising concerns that spending could fall off. The Thomson-Reuters/University of Michigan consumer-sentiment index fell for the second straight month in September. This month it dropped again, falling to its lowest level since December 2012.Millions of people losing their health insurance and almost everyone having to pay more than they used to is going to necessarily lead to less consumer spending and less consumer confidence. In an already weak economy that is driven by consumer spending, that sure looks like a recipe for a recession.
Consumer attitudes soured as Washington gridlock worsened, leading to a government shutdown that ran from Oct. 1 through Oct. 16. It's not yet clear if that darker mood will translate into less spending.
These Ivy League, society-reshaping ideas never work out the way they did in the faculty lounge bull sessions.
|H/T: Flopping Aces|