No mystery why retailers are pulling back on Google search ads: consumers aren’t shopping anymore. Retail sales plunged -1.2% in September, much more than the already deflated -0.7% estimate.
AP: Government data show retail sales fell off a cliff in September, plunging by the largest amount in two years. Worried consumers shunned the malls and auto showrooms in the midst of the country’s financial meltdown. In addition, the government says wholesale prices fell for the second straight month in September, driven by a sharp drop in energy costs.
The Commerce Department reported retail sales decreased 1.2 per cent last month, nearly double the 0.7 per cent drop that had been expected. The surprise showing significantly increased the risks of a recession. Consumer spending is two-thirds of total economic activity.
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