Retail sales SAG as Superstorm slowed buy sandy

12:30 PM Retail, sales, sandy, slowed, Superstorm No Comments

Reuters
Retail sales suggesting a loss of momentum in spending in the fourth quarter fell in October for the first time in three months as Superstorm Sandy which hit brakes on car purchases.

Other data on Wednesday showed little inflation, with wholesale prices in October for the first time since may, that the Federal Reserve latitude continue its easy monetary policy stance to the economy nurse back to health.

Retail sales 0.3 percent after an increase of 1.3 percent in the September last month dipped, so the U.S. Department of Commerce. Economists had sales fall 0.2 percent expected.

Retailers offered early read sales report on the Storm effects on the economy. Its full impact will probably be felt in the November data.

Analysts estimate that the storm, densely populated that the East Coast lashed and damage up to $50 billion, percentage point from fourth quarter GDP could shave less than a half.

"While we some positive repayment later in the quarter expect a soft start to the fourth quarter real consumption, this", said Peter Newland, senior economist at Barclays in New York.

The U.S. Department of Commerce said that it had received signs from companies, that the storm had both positive and negative impact on the sales data by October.

Sales of automobiles dropped by 1.5 percent, that largest fall since August last year, after one of 1.7 per cent in September. Automakers have blamed for the decline of the storm and expect a recovery in November.

Excluding auto, retail sales were unchanged last month after promotion from 1.2 per cent in September that said the U.S. Department of Commerce.

The storm also likely dented sales at clothing stores, the 0.1 percent dipped after rising 0.4 percent of the previous month.

Material sales surprisingly building fell 1.9 percent, defying expectations of a surge of purchases above. Sales rose 2.1 percent in September building materials and garden equipment.

Surprising 1.4 percent last month increased receipts at gas stations. Gasoline sales was expected, due to a decline in gasoline prices show some weakness which in the course of the month. Gasoline posted their largest decline in sales since May 2010.

The Labour Ministry said separately the seasonally adjusted producer price index 0.2 percent last month, the first decline since may after increasing by 1.1 per cent in September slipped.

Economists expected prices at farms, factories and refineries had to increase by 0.2 percent last month.

Wholesale prices excluding volatile food and energy prices costs also fell 0.2 percent, the biggest fall since October after his apartment in September. Economists had expected core PPI rising 0.1 percent.

The benign tone of the report producer price inflation should be fed room to give low interest rate environment. Consumer price inflation currently hovers around 2 percent target of the Fed.

The American Central Bank in September launched a third round of asset purchases, you buy $40 billion, every month until there are to improve the labour market value of mortgage-backed securities.

It hopes that the purchases for the borrowing costs are lower.

In addition to Superstorm sandy, the retail sales report marks the sluggishness of domestic demand.

Sales of electronics and appliances fell 1.0 percent the previous month of boost from purchases of Apple's iPhone 5 some discharge. Furniture sales fell 0.6 percent after dropping 0.2 percent in September.

So-called core retail sales, which exclude, building materials, gasoline, and cars, fell 0.1 percent after a 0.9 percent increase in September. Core sales correspond most likely consumer spending, the part of the Government report gross domestic product.

Last month autumn suspected that consumer spending slowed early in this quarter after in the period from July to September on a solid foundation.

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Growth rate of the U.S. economy slowed in the second quarter

10:30 AM economy, growth, quarter, second, slowed No Comments

By NBC News staff and wire reports
The US economy grew up to the slowest pace in nearly a year between April and June as consumers and businesses concerned about jobs, wages, Washington and Europe died from a raft.

The Commerce Department reported that gross domestic product expanded pace from January in the second quarter, after rising to a 2.0 percent revised upwards to March at an annual rate of 1.5 percent. Output for the fourth quarter increased by 3.0 per cent to 4.1 per cent.

The growth rate in the second quarter, the expectations of economists was, was the slowest since the third quarter of 2011. It solves a major hurdle for President Barack Obama like him for reelection in November against the Republican challenger Mitt Romney battles. With only a few months until the election left voters already form strong opinions about the economy, may be hard to shake that before they get in the voting booth.

"The economy fights to keep level", said Robert dye, Chief Economist at Comerica in Dallas.

Consumers spent at the lowest speed in a year when they again reduced, purchase helped car, economic growth in the previous two quarters.

Shoppers are spending in an economy, which is not yet fully by the financial crisis and the recession late 2007 to mid-2009 with the nation, unemployment rate of 8.2% has recovered. This reluctance reflected in each of the last three months in the retail sales, closed. Also wages stagnate since years undermines the willingness of consumers to spend.

The economy needs a growth rate of at least 2.0 to 2.5, which prices stable, let % only to employment than whittling down to keep it.

The weak growth report, characterised by weak data of employment to manufacturing, can expectations in a third round of bond purchases, known as quantitative easing by the Fed raise.

The Fed has injected already $2.30 trillion into the economy through asset purchases and overnight interest rates close to zero, leaving some economists worry to make that the Fed left not enough applications, has his Kit.

No major political announcement is expected at the Fed next week, but many economists now say two-day meeting could move the Central Bank if policy makers on September 12-13.

Last month the Fed extended a program to the bonds re-weight, which already holds it in the direction of the longer dated borrowing costs.

The economy was by ensure deep Government spending cuts and tax increases, the expected early 2013 kick in hit, as well as problems of the debt crisis in Europe.

The biggest factor that is at rest with a weight of fear that politicians in Washington not in the position, is to avoid the so-called tax cliffs at the turn of the year, said economists.

Current economic data suggest to limited area for growth in the third quarter again on its feet.

Wall Street and Washington Watch consumer spending closely because it accounts for more than two-thirds of the U.S. economy. Structures.

Reuters contributed to this report.

CNBC Rick Santelli breaks the latest economic data on the gross domestic product of the country, with Joel Naroff, President of Naroff Economic Advisors.

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Fed has slowed down some options such as world economic growth

1:30 PM economic, growth, options, slowed, world No Comments

For the first time in decades, the fed as a toothless tiger is looking for.

It is clear that is several wheels of the world economy in the unison brakes, pressure on the world's largest Central Bank spur growth Assembly. But with the cost of borrowing already at historic lows, it is far from clear whether further measures, which are cheaper to help on money.

"they have a hammer and they are looking for a nail," said Alan de Rose, Managing Director of the Government trade and finance at Oppenheimer, Reuters.

The Fed Committee meets policy setting next week amid reports that it may be in the close of fresh Act, to stimulate the weakening economy.

Companies concerned about the inclusion of new risk and households ends with struggling to meet new data you show this week on an ongoing slowdown in the United States

The Commerce Department estimate of second-quarter gross domestic product, due Friday, is expected that slowed down to show growth in the first three months of the year from 1.9 percent to 1.2 percent. The slowdown follows a series of monthly reports on a weakening labour market and show a stubbornly high unemployment rate.

Still, the impact of a deepening of the recession in Europe feel American companies. Surveys of Europe's private sector this week, showed that the contraction that began in weaker economies of the eurozone has now spread to Germany and France. In the 17 countries that use the euro, the production has fueled issue. Consumers are gloomy as it 2009 already.

As the European meltdown on the entire U.S. economy weighs, States are dependent on vulnerable heavily on exports, by the deepening crisis overseas.

If the reduced global credit markets in the fall of 2008, central banks around the world quickly exhausted they reliably have used the primary tool, for decades fight financial fires: slashing interest rates given for money directly to banks. Despite these efforts, the world economy into a nasty recession slipped.

Since the Fed has a number of new tools, including the purchase of some $2 trillion in bonds to lower prices on other forms of credit, see you mortgage deals. For a time those movements seemed to revive growth: gross domestic product and setting picked last year, and the housing market seemed stabilized have.

Despite a flurry of press reports of possible new moves, that is not expected fed to make fresh announcements before their next meeting two days policy next week. Even most of the measures under consideration have been tried already.

Buy more bonds could help, support to the financial markets, but would do little to spur lending. With interest rates at or near record low extending the promise, the extremely low prices on 2014 out by itself provided probably not for the promotion of businesses and consumers to take on more risk.

So, with the world economy slows, the Fed deeper in his Toolbox reached.

With borrowers on the sidelines are considering measures to try fed policy, the bankers make more money in the system slide prod. Such a move would be to reward banks that borrowed more loans, an idea to make a recent program launched by the Bank of England. Bernanke indicated to reporters in June that the Fed was considering the plan.

Another measure to the urge to move bankers make more money from their depots and again in the economy would mean cutting the interest rate the Fed pays financial institutions Park which keeps their money at the Central Bank, is that now lies at 0.25 per cent.

But no matter how many new, that they are trying moves, Fed Chairman Ben Bernanke has acknowledged that the impact of these measures will be limited. When he last week legislators faces of the Central Bank warned that major obstacles, their task of strong growth and stable prices that are beyond their control.

"Rest in the United States continue to by a number of other headwinds, including the still tight credit conditions for some businesses and households, and the restraining effects of fiscal policy and fiscal uncertainty, be withheld", Bernanke told a Senate Panel.

Translation: Businesses and consumers are still have a hard time for loan. And unless Congress and the White House, head of the emerging $600 billion "fiscal cliff" increased massive taxes and spending cuts, there is little the Central Bank can do to avert a further recession.

The Fed is not alone in its predicament.

Seems to be now locked in a coordinated slowdown with the world central banks around the world have been the system with money to businesses and consumers to borrow and spend prod floods.

But still, that the world economy will lose momentum. The downturn is most evident in Europe, where a deepening debt crisis weigh on business and consumer confidence and hammering of the banking system.

Like the American fight European Central bankers to push money into the economy. But deep Government spending cuts in Greece and Spain many households without content spend leave have. And in the middle of a debt-induced are a financial storm, companies and consumers across the continent to lend no desire. A closely watched European Central Bank survey showed Wednesday, that the demand for loans remains weak in the euro area.

In China show slowed rapidly, the forward movement of the last big economy. Although still is booming compared to the developed economies, try Chinese officials to control their emerging economies on a course, maintains the robust growth but avoid a ruinous run up prices.

After the adoption of measures last year to a new bubble to cool, Beijing moves now to resume growth. But these measures are likely to be too limited to help to revive the rest of the world economy.

Reuters contributed to this report.

Discussion about the State of U.S. markets and whether further Fed action is necessary, with CNBC Contributor Joe Lavorgna and Ron Insana and CNBC by Steve Liesman.

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