We’re getting some more U.S. economic data and the tone overall is okay. Retail sales dropped 1.5% in September as the Cash for Clunkers program expired (Auto sales plunged 10.4% on the month). But that was actually better than the -2.1% reading that was expected. If you take out autos and gas, sales were actually up 0.4%, double the 0.2% economists were looking for.
Import prices rose 0.1% in September, slightly below the 0.2% rise that was expected. If you strip out all oil, you get a 0.4% rise in import prices. That’s the biggest increase since July 2008.
Interesting to watch how the dollar behaves here. The Dollar Index is plumbing new depths, but the yen is trying to hold here. I wouldn’t be surprised if it turns out the Japanese are intervening. But they’re fighting a losing battle in my view.
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About two weeks passed since this article issued.
From a report released Oct 27th , Consumer confidence unexpectedly fell for a second month in October.
This report is obviously related to the expiration of Cash for Clunkers program.
I can imagine how housing busts damaged the streets in United States.
Since consumers cannot finance themselves as financial institutions ,
I think this problem has a big impact to the world economy.
Recently Yields of Japanese long term bonds have started to rise with risks of 200%
GDP debts of government .
The voice is clear.
“You don’t buy our products , which means we can’t survive.”
“And You next. “