So much for the idea that consumers aren't going to spend coming out of the lockdown.
CNBC reports:
Retail sales shattered already-lofty expectations for May as consumers freed from the coronavirus-induced lockdowns began shopping again.This is only the beginning folks. A lockdown collapse is different from a business cycle decline.
The 17.7% headline gain including food sales easily topped the record 6.7% from October 2001 — a month after the 9/11 terrorist attacks — and beat the 8% estimate from economists surveyed by Dow Jones...
Clothing and accessories stores reported the biggest percentage gain at 188% while sporting goods, hobby, musical instruments and book stores rose 88.2%.
The Federal Reserve has pumped massive amounts of new money into the system---and it will be spent.
Prepare for accelerating price inflation that is no more than a month or two away.
-RW
April looks like the biggest monthly fall in retail sales ever. And May looks like the biggest monthly gain in retail sales ever. April, households in lock down and no work money. May, households come out of lock down spending funny money from the Government. Looks like a huge wash to me...but I could be wrong.
ReplyDeleteJune and July has more funny money to be spent also. I think a wash plus a little more is what they were after. I could be wrong.
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