While the government and mainstream media keep telling us, "The economy is improving, the economy is improving!" we keep getting news like this from the New York Times:

With a hint at what may be in store for shoppers this holiday season, Macy's cut its profit outlook and CEO Terry Lundgren said markdowns are likely as a convergence of factors lead to a high inventory of goods for retailers. Macy's third-quarter sales fell 3.6% at established locations."

Macy's Q3 revenue dropped to $5.87 billion, falling short of the $6.15 billion forecast by Wall Street analysts. The company dropped its full-year earnings forecast a full 50 cents, from $4.70 to $4.80 per share down to $4.20 to $4.30 per share.

Comparable store sales also tumbled by 3.9%. That was far worse than the expected negative 0.4% drop.

The New York Times offered a number of plausible excuses for Macy's poor performance, including warm weather and a strong dollar. But the bottom line is people simply aren't buying as much stuff, as indicated by Macy's chairman Terry J. Lundgren in his statement:

We are disappointed that the pace of sales did not improve in the third quarter, as we had expected. Spending by domestic customers remained tepid, especially in key apparel and accessory categories. Simultaneously, the slowdown in buying by international visitors continued to significantly impact Macy's and Bloomingdale's stores in tourist centers, which are some of our company's largest-volume and most profitable locations."