Category Archives: recession

Why Do We Care about Retail Sales?

In these times? Among other reasons, it’s: (1) An indicator of household consumption behavior; (2) An indicator of conditions for business – including small/medium size enterprises. Hence, the recovery of retail sales has been much lauded. But if you thought the recovery was in brick-and-mortar retailers, you’d be somewhat misguided.

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Business Cycle Indicators, August 7th

With today’s employment situation release, here are five key indicators referenced by the NBER’s Business Cycle Dating Committee in Figure 1: Nonfarm payroll employment (blue), industrial production (red), personal income excluding transfers in Ch.2012$ (green), manufacturing and trade sales in Ch.2012$ (black), and monthly GDP in Ch.2012$ (pink), all log normalized to 2019M02=0.

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Record-breaking drop in GDP

The Bureau of Economic Analysis announced today that seasonally adjusted U.S. real GDP was 9.5% lower in the second quarter than it had been in the first quarter, which they reported as a decline at an annual rate of 32.9% (0.9054 – 1 = -0.329). That is four times as large a quarterly decline as anything since the BEA began reporting quarterly GDP in 1947, and represents a 10 sigma (10 standard deviations) event.
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