Retail Sales Weak In March

Retail sales didn't meet the expectations of economists' forcast of a 0.7% rise in retail sales last month. After a sharp downturn in department store and clothing sales, retail sales only rose 0.3% in March. The Commerce Department seemed so shocked about this but thinking about it, why would they be? it's just a transfer of where the money is being spent. It's on gas! Sales at gasoline stations pushed ahead, rising 2.1%, which reflects the impact of higher prices on oil. So all of this doesn't really take me by surprise.


sam said...

I agree with Fred on this topic. With gas prices rising so rapidly, it is easy to see that there isn't enough money to go around.

Dr. Tufte said...

What does this have to do with ManEc?

BTW: isn't gas sold at retail as well?

BTW 2: doesn't "sales" mean price times quantity, so that a price increase on an inelastic good like gas probably increases "sales".