Retail sales for the back-to-school season came in lighter than analysts projected 0.2% vs 0.3%.
The lowered expectations was far off last year’s season, which was 0.5%.
To say seven years of near-zero wage growth and no savings interest has the American consumer squeezing every dime is no exaggeration.
The global economic slowdown is coming ashore from reduced China exports (due to falling demand) and European malaise, not to overlook the desperate economic conditions in South American.
All the while crude oil prices have been cratering this summer on diminished demand and OPEC price wars.
The US retail picture is so bad that a bankrupt surfing clothier is taking space in a liquidated electronics firm — Radio Shack — in a vain attempt to boost sales.
Perhaps all those kids going back to school were given a choice, new jeans or new iPhone? Judging from the news out of Apple, Abercrombie & Fitch should be worried.