Weekly Chain Store Sales Weak

Weekly chain store sales came in at -2.5%. Is the economy suddenly slowing? I think the largest factor is that comps are getting harder as the economy started recovering this time last year. Everyone was heralding the US consumer in March when we were comparing against the depths of the recession. The measuring stick is what has changed. I continue to expect a second half slowdown as comps get tougher and stimulus begins to decline. A renewed credit crisis is also a possibility.

1 comment:

PJ said...

Yes, the economy is slowing.

The only thing holding up retail sales was the stock market, which gave comfort to higher-income consumers. Now that the stock market has reversed, higher-income consumers will probably join middle class and low-income consumers in retrenching.