The U.S. retail sales forecast from the National Retail Federation for calendar 2006 is 4.7% (NRF Forecasts 4.7% Growth for 2006 Retail Sales, 2006), more bullish than the Bloomsberg survey forecast of 3.4% for the same period (Leading U.S. Indicators Index Points to Slower Growth, 2006). Both forecasts exclude automobile sales, which has contributed to much of the recent volatility of the consumer spending and retail sales figures on a quarterly basis. The NRF press release acknowledges that pressures facing consumers include rising interest rates and diminishing sources of "spending power," by which they mean that as the housing market cools, home equity will not be able to sustain as much spending as it did in the past.
For 2005, the NRF forecast for retail sales was 5.6%, while the actual retail sales growth for 2005 was 6.1% (NRF Forecasts 4.7% Growth for 2006 Retail Sales, 2006). Bloomberg's consensus forecast for the second half of 2005 was 6.9% (U.S.
According to Consumer Flow at Economy.com, the "fundamental drivers of consumer spending," - which generates retail sales - in the near future in the U.S. will include rising interest rates, durable goods spending, and tightening labor markets. Rising interest rates typically depress sales of so-called "big ticket items," those items usually purchased on credit, because the higher the interest rate, the higher the required payments…
While several studies exist that have explained the impact of economic indicators on stock prices for large cap stocks, there are none that differentiate between the combined impact of all the major economic indicators on different stock categories – large cap and small cap stocks.
It is essential for the organizations to capture large set of information or data and monitor it cautiously. One of the most important data in this regard is economic data. For this reason, most of the business analysts uses different economic data in order to interpret important signals about the future condition of the economy and country.
Economic indicators are useful only when the researcher has the idea to interpret. There has been strong correlation between economic growth and profits of organizations. Data on economic indicators Unemployment rate: The following provides the data on unemployment rate of United States.
Intermediate goods do not have their utility and demand for their own sake rather they are demanded for the production of final goods. For instance if raw cotton is used for producing yarn, raw cotton is the intermediate good then, but if yarn is used for producing cloth, then yarn becomes the intermediate good.
It is submitted on every 12th of the following month.
This is an inflationary indicator type of measurement that aims to evaluate wholesale price levels in the country for intermediate goods used in production. Commonly, it indexes the measure of the average change of selling price of goods on the sellers' perspective.
However, the targeting of specific commodities for different taxation treatment violates the neutrality principal of taxation by targeting certain products, and since cigarettes, like lottery tickets which are also heavily taxed, are disproportionately purchased by lower- and middle-income consumers (Talking taxes: Policy brief #9, 2005), these taxes are considered regressive.
The author states that bloomberg forecast a growth rate of 3.7% in personal income for 2006. The website Financial Forecast Center, which claims to use forecasting methods “rooted in engineering, not economics” by analyzing macroeconomic factors as “complex systems” using “artificial intelligence” produced an annualized forecast of 3.66%.
The retail industry employed over 2.8 million people as at the end of September 2008. This equates to 11% of the total UK workforce.”
In this global market every component of business from manufacturing, marketing, distribution and others each got specialized.
Business cycle fluctuations are often explained against the model of Keynesian economy where the economy or an industry reaches short term equilibrium in a state of less than or above full employment status. (Sullivan and Sheffrin, 2003) When an economy or a industry