No, we’re not talking about Treasuries, since that would be patently untrue. Instead, this is about the fabled US consumer – (s)he who contributes more than 70 per cent to the country’s GDP, and roughly 20 per cent to global GDP, according to Merrill Lynch data.
And the US consumer has gone on a buying strike, little moved by a national proliferation of deep discounting, buy-one-get-one free offers and “the holidays”.
Data released by the Commerce Department on Friday showed sales at US retailers fell for a fifth straight month in November, the longest decline in at least 16 years. Gasoline sales also tumbled by a record amount, which reflects the sharp decline in prices since these numbers are compiled by aggregating total sales (on a cost basis) by gas stations.
Total retail and food sales fell 1.8 per cent to a seasonally adjusted $355.66bn last month foll
owing a revised 2.9 per cent plunge in October. Sales declined 7.4 per cent compared with the same period last year. Excluding motor vehicles and parts, sales were down 1.6 per cent in November after a revised 2.4 per cent October fall. Excluding gasoline, November retail sales were down 0.2 per cent after a 1.6 per cent slide in October.
The numbers have been falling since July, making this the longest stretch of of declines since the Commerce Department started keeping records 16 years ago.
Related links:
On 5th Ave, discounts arrive early – NY Times