As national sales drop, Missouri residents lack confidence
COLUMBIA - National retail sales are down, despite job growth and the lowest unemployment rate since the Bush administration.
Sales dropped .3 percent, which may not sound like a lot but has caused major concern among investors. Both the Dow Jones and S&P 500 have dropped, with the S&P dropping to its lowest level since April.
Even as employers are hiring, people are not spending. According to the September federal jobs report, the reason may be that while employers are hiring, wages remain stagnant. Economists say stagnant wages put a ceiling on economic growth.
Economists did expect a slow down of economic growth because of a drop in oil prices; however, economists did not expect core spending to drop like it has. Spending at places like clothing stores dropped 1.2 percent in the last month.
Some in Columbia believe reasons for the slowdown could be a lack in consumer confidence and a shaky international uncertainty because of trouble in Europe and the Middle East.
Missourians may lack confidence in the economy believing the growth to be short-lived; others may be wary after the so-called "great recession" a couple of years ago.
Retail sales account for a third of the spending in the economy.
The drop in sales from August to September is the biggest drop the economy has seen since 2010.