Monday, November 17, 2008

Declining Consumption - Trouble

Most people assume deflation right now and estimate that to be at around -0.7%.

Even when this is factored in, retail consumption is lower now than in the previous 12 month period.

Econbrowser has a good post on the 12 month drop in retail sales of -.08% (-0.5% if you factor in deflation).

You would have to go back to 1981, when Reagan first took office, to see a drop of this magnitude.

Retailers are getting and will continue to get hammered. Another casuality in the too big / too quick constant and forever growth scenario.

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