Sales Problems: Real sales growth (that is, after inflation) from 2006 to 2007 was essentially flat, after which sales cratered by 15%, thanks to the recession.
The timing of the sales shortfall is inopportune as it comes at a time when investors are looking for real sales growth, having grown tired of earnings growth driven by cost cuts.
However, real retail sales growth in China accelerated in September, rising 13.2 percent, the fastest pace of the year, taking year-to-date real retail sales growth to 11.6 percent, compared to 11.3 percent during the first nine months of 2011.
Barclays is also expecting flat nominal retail sales growth, which implies a further increase in real retail sales growth on the back of a sustained pickup in property sales.
FORBES: On Next Week's Data, China Economy Still A Mixed Bag
Edward Yardeni, chief economist at Deutsche Morgan Grenfell, points out that the growth in firms' real sales per employee used to rise in step with productivity growth.
By 2006, sales were flattening, and the Campaign For Real Beauty proved unsustainable for driving sales growth.
Imagine that a portfolio manager in 1999 told clients he thinks this small outfit called Microsoft could have a real growth spurt from core software sales as households and many small businesses were increasing their PC purchasing into the 1990s.
Imagine that a portfolio manager in 1999 told clients he thinks this small outfit called Microsoft (nasdaq: MSFT - news - people ) could have a real growth spurt from core software sales as households and many small businesses were increasing their PC purchasing into the 1990s.
They have stated grand ideas about expanding their presence abroad to up to 40% of sales, and there is real potential for growth overseas.
The city, he notes, has a balanced budget with conservative estimates of future revenue that are not dependent on growth in real estate taxes or land sales.
The NBER uses key monthly indicators of economic output, including employment, industrial production, real personal income, and wholesale and retail sales - to determine when economic growth has turned negative, rather than relying solely on two quarterly declines in GDP.
As impressive as the earnings spike is, the real highlight was the sales increase, which is a greater indicator of actual business growth.
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