U.S. Retail Sales Fall

U.S. Retail Sales Fall

From Bloomberg:

Sales at U.S. retailers dropped in July for the first time in five months as record gasoline prices and tighter credit reduced automobile purchases.

The 0.1 percent drop followed a 0.3 percent gain the prior month that was larger than previously reported, the Commerce Department said today in Washington. Sales excluding automobiles rose 0.4 percent, less than anticipated.

The sales drop came even as the Treasury distributed tax rebates as part of the government's fiscal stimulus plan. Consumer spending, which accounts for more than two-thirds of the economy, is likely to keep fading, hurt by rising unemployment, falling property values and elevated fuel costs.  

We are already seeing tax rebate effect starting to disappear.  Yet, the administration keeps telling us the effects will last until the end of the year.

The Labor Department reported separately that prices of imported goods rose 1.7 percent in July from the previous month, after a 2.9 percent increase in June.

This is a 21.6 percent increase from a year ago. 

http://www.bloomberg.com/apps/news?pid=20601087&sid=annvUlX6HikU&refer=home

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