ECONODAY: Consumer spending was unusually weak in the first quarter and doesn't look to be improving this quarter. Retail sales fell 0.3 percent in May vs Econoday's consensus for a 0.1 percent gain. Weakness riddles the report including a 1.0 percent drop for department stores, a 0.2 percent decline for autos, and a 0.1 percent dip for restaurants. Two readings that echo price contraction in this morning's consumer price report are gasoline stations, down 2.4 percent, and electronics & appliances stores, down 2.8 percent as phone prices continue to come down. Other readings are likewise very weak, at minus 0.3 percent excluding autos and no change when excluding both autos and gasoline. Control group sales are also unchanged (this excludes autos, building materials, gasoline and restaurants). Wages aren't showing any traction and neither is consumer spending. The consumer just hasn't been participating this year...
