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Ouestions? 12/23/2003 10:08:19 AM
GDP grew at an annual rate of 8.2% in Q3, 2003. Job Hires, though, were slight; contributing to the slight gain of 0.5% in Labor Incomes. Inventories were drawn down in November by in excess of $9 Billion. These numbers tell a story, but one which is not as pleasant as many Forecasters would relate. The rate of Inventory decline, in the face of marginal increase of Consumer spending of 0.4%, means an absense of Inventory stocking. It also means Business purchasing was the major conponent of the GDP growth. This has a real downside, in the presence of minimal Labor Income growth; namely, Business investment was buying foreign product.
Target reported lower than Estimates sales in the Christmas season, as did Walmart; these are the two big Discount houses. Their takeover of Christmas Season sales has been advancing over other Retailers for a decade, and indications are this trend is still continuous. The result must mean Christmas Season shopping is down, even more than last year's. George W. Bush must have scored another losing year with his Tax Cuts and Economic policy. lgl
