Retailers Leading the Way? Not Really.

For months now, investors have been looking to the retail sector for insights on the US economy. After all, 70% of US GDP comes from consumer spending. So the retail sector is often thought of as a bellwether for the US economy as a whole.

Take the April same-store sales numbers, for instance. That month, same-store sales declined for most major retailers. However, instead of admitting that things were slowing down, they blamed an early Easter and rainy weather for their poor results.