Altruistica

"Altruistica": Seeking a return to full financial disclosure and regulatory oversight. A financial market analysis blog for "entertainment purposes" only by an experienced CFA seeking new hedge fund engagements for investment writing and analysis. The author has experience investing internationally, running a hedge fund, making angel investments, and helping launch five startup companies. Investors should do their own due diligence.

26 December 2006

Richmond Fed Confirms Recession Under Way


The latest survey by the Federal Reserve Bank of Richmond confirmed that the revenue growth in the broad service sector slowed in December. NO KIDDING !! Deep discounts totaling 30-50% across broad retail categories got people out on the pre-Xmas weekend. The Richmond Fed claimed that retail sales contracted "slightly" in December, with big-ticket sales items leading the decline in December. Retail inventories fell for the first time in six months, though the contraction was mild. Shopper traffic also slipped, and retailers were less optimistic about sales expectations for the first half of 2007. In short, buyers are cautious and scarce. Booyah for 2007!!

Retail Sales Slip in December, Pulled Down by Big-Ticket Sales; Revenues Continue to Grow at Service-Producing Firms
According to the latest survey by the Federal Reserve Bank of Richmond, revenue growth in the broad service sector slowed in December. Retail sales contracted slightly in December, although sales results from the final weekend before Christmas are not included in this month's survey. Big-ticket sales led the decline in December, but the pace moderated from that of a month ago. Retail inventories fell for the first time in six months, though the contraction was mild. Shopper traffic also slipped, and retailers were less optimistic about sales expectations for the first half of 2007. In contrast, contacts at service-producing firms said revenues grew at a faster pace in December, and they continued to have a bright outlook for the next six months.

Retailers made additional cuts in employment in December, while services firms added to their payrolls. Service sector wages rose at a faster clip in December. Price growth in the broad service sector moderated somewhat, although prices rose more quickly at retail establishments. For the first half of 2007, retailers expected a pick up in price growth, while service-producing firms anticipated slower price growth.

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