Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (31679)	6/2/2000 8:27:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

In next three minutes I hope that numbers are in line with this kind of report...<<Sales at the nation's biggest retailers were lackluster in May, with most merchants blaming cooler-than-normal weather for dampening business at their stores last month. But analysts also said that the sluggish figures released today may signal some slowing in consumer spending, resulting from the Federal Reserve's six interest-rate increases over the past year. ``A lot of problems in May had to do with the weather,'' said Kurt Barnard, who runs the consulting firm Barnard's Retail Trend Report in Upper Montclair, N.J. ``But I also have a sense that that the series of interest rate hikes are just beginning to take a bite.'' The Bank of Tokyo-Mitsubishi retail sales index, which tracks sales at about 80 chains, rose 4.6 percent in May from the same month a year ago, when the index rose 6.8 percent. May started off strong as warm weather moved in after a chilly, dreary April depressed sales of everything from shorts or garden supplies. Sales, however, began to slow as the month progressed with another cool spell, especially in the Northeast and Midwest, dampening demand for seasonal goods. While sales in May basically met most retailers' expectations, they were far from stellar and follow weak results in April and March. That has left analysts scrambling to figure out whether the recent sales slowdown can be blamed on the weather or if it indicates some moderation in the buying binge Americans have been on for more than a year. The Fed has been aggressively raising rates since last June in an effort to keep inflation under control by raising the cost of borrowing for consumers and business. Five increases in short-term rates of one-quarter point each were followed May 16 by a one-half point boost as the Fed warned that the threat of inflation remains alive in the economy. ``We think it is premature to say that May's results are an indication of a slowdown in consumer spending because the weather was abnormally cool,'' said Jeffrey Feiner, managing director at Lehman Brothers Inc. ``You can't pick one out from the other.'' Still, analysts believe that consumers will likely scale back their buying later this year. Despite the strong labor market, there will be a pullback if interest rates keep rising and the economy finally begins to slow its pace, analysts said. >>