BY: Adam Gavriel
It’s reasonable to attribute a small part of that drop to the devastation that Hurricane Sandy brought to the Northeastern United States, and the country’s biggest hub in New York City, but that certainly wasn’t enough to account for it all.
“There’s probably some hurricane impact,” Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC in New York said. “But when consumers are cautious they tend to spend more on staples than discretionary items, and that’s exactly what happened this month.” It was Dutta, who correctly forecasted the October decline in sales. “The broad story is that consumers remain cautious.”
While the 0.3% drop seems on the surface to be a small number, it continues to show that consumer confidence is falling, and by extension that’s less money is being pumped into the economy. The bad economy might also explain the drop in the auto-industry, an Obama favorite talking point during the 2012 election cycle. The auto industry saw its sales decrease in October by 1.5%.
The report of the drop in retail sales comes on the heels of the reported 7.9% unemployment rate in October, the second month in a row the US average has remained below 8% and still higher when the POTUS took office four years ago.
Some believe this drop will be an aberration with the prime shopping holiday-season rapidly approaching.
“As the holiday shopping seasons begins, Hasbro Inc. (HAS)’s retail customers are ‘looking forward to a good year,’ said David Hargreaves, Chief Operating Officer of the Pawtucket, Rhode Island-based toymaker, during a conference call with analysts on Oct. 22. ‘Certainly consumer demand has held up pretty well. I think they’re sort of cautiously optimistic.’”
While the economy continues to languish somewhere between just being a soft economy and flat out recession, millions of Americans are still finding themselves out of work with no end in sight. In fact so many are depressed in their inability to find work; they have given up searching for it altogether. That’s why Crossroads Consulting can be so helpful in these extremely difficult times. We’re ardent optimists and we believe in the strength of America. We have not given up hope and believe that our best days still lie ahead. There needs to be cooperation in Washington among both Conservatives and Liberals to work together to resolve what issues we’re facing.
Don’t give up! Go out and make connections and then use them. Find online resources or professionals to help and use them. At Crossroads Consulting we have a plethora of job openings from all across the nation that we are looking to fill TODAY. If you’re not confident in your resume, there’s no reason to not let us have a look at it for you. We want to help you from step 1, to the day you walk into your new position. Let us help you as we, “Put the ‘human’ back into ‘human resources.’