Which Retail Sales Data Is Right??
Saturday September 14, 7:16 am ET
[ The following is an excerpt]
Reuters Business Report
By Angela Moore
NEW YORK (Reuters) -" Is somebody out there using fuzzy math?
Retail sales figures for August released on Friday by the U.S. Commerce Department
painted a picture of an economy being lifted by consumer spending. But, just last week,
retail companies issued same-store sales data, also for August, that were weak and
seemed to contradict the government data.
The disparity left market watchers
scratching their heads this morning
-- especially when placing bets their
on how the stock market would react.
Retail sales figures measured by the
government rose 0.8 percent in
August, down from increases of 1.1
percent in July and 1.4 percent in
June, the Commerce Department
said . To economists, the data signal
the consumer sector -- which drives
two-thirds of economic growth -- is
still thriving even as the rest of the
economy struggles.
The bullish mood, however, seems at
odds with many retailers who have
posted dismal same-store sales, frequently below expectations, and warning of a
disappointing second half. Lehman Brothers softline retail index, which measures
same-store sales, was down 1.4 percent in August ."
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