The September surge in retail sales slowed in October, but there’s still no sign of recession in U.S. consumer spending. Total retail spending rose 0.5% last month on a seasonally adjusted basis. That’s a substantial deceleration from September’s 1.1% pop. But ignoring September’s unusual and unsustainable gain, October retail sales continue growing at a respectable clip. You can’t read too much into any one data point (or data series), but if you’re looking for clear-and-present signs of trouble for the business cycle you won’t find it here, at least not today.
Daily Archives: November 15, 2011
The Triumph Of Austerity (And Its Consequences)
Europe’s slowing economy is a wake-up call for the austerity-now folks. Industrial production in the euro-zone fell 2% in September, a sharp drop from August’s 1.4% rise, EuroStat reports. The annual pace is still positive, but a slowdown is evident here as well with September’s year-over-year rise of 2.2% vs. 6.0% in August. Germany is still the exception these days, enjoying far stronger growth than its neighbors. What accounts for the divergence? There’s no single answer, but an obvious place to start: interest rates. The high and rising rates outside of Germany are conspicuous, whereas German rates are low and falling.