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March 5, 2013

Supply Side and Demand Side on Different Pages?

March 5, 2013

Supply Side and Demand Side on Different Pages?

Chain Store Sales (week ended 3/2/2013)

ICSC-Goldman

– Store Sales week/week  +0.2%.  Previous was +0.1% – Store Sales year/year +1.8%.  Previous was +2.9%.

Redbook

– Store Sales year/year 2.2%. Previous was +2.7%.

The Consumer Metrics Daily Absolute Demand Index had dropped for 9 consecutive days but has been flat from 2/28 – 3/3.

All of these reports indicate weak growth in consumer spending which is the force driving the economy.

ISM Non-Manufacturing Index (February 2013)

– Composite Index was 56.0 up from previous 55.0.  Some of the components (new orders and business activity) slowed but are still growing.

This indicates strength on the supply side contrasting with weakness (at least in today’s chain store sales reports) on the demand side.