SODOM & GOMORRAH: Bloomberg news reports that retail sales in the United States “unexpectedly” decreased by 0.5% in June. Unexpected by whom?
For the third straight month, the US Commerce Department reported that retail purchases have fallen. The 0.5% decrease in June was greater than the 0.2% decline seen in May. Bloomberg News reports that this is an “unexpected” decline since they wrongly forecasted a 0.2% rise in June.
The job market continues to put a strain on US households. Retailers such as Target, Macy’s, JC Penney, and others have had a difficult time keeping up with shareholder expectation. Sears has been particularly hit hard by some of the developments in the retail market. In 2012, they have thus far posted a -7.51% profit. While Q2 earnings were a slight positive, the retail giant continues to struggle with its finances as it attempts a number of spin-offs.
“People are just pulling back,” noted Michael Carey, the chief economist for North America at Credit Agricole CIB in New York.
The surprise at the report and the misguided forecast are proof positive that mainstream economists exist only to make astrology look like a legitimate field of study.