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retail sales

retail

Retail Sales Rebounded in April

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The Census Bureau said that retail sales rose 1.3 percent in April, rebounding from a decline of 0.3 percent. Much of that improvement stemmed from better motor vehicles and parts sales, up 3.2 percent and offsetting the 3.2 percent decrease in the prior report. Other sectors with increased sales in April included gasoline stations (up 2.2 percent), nonstore retailers (up 2.1 percent), miscellaneous store retailers (up 1.5 percent), food and beverage stores (up 0.9 percent), health and personal care stores (up 0.9 percent) and furniture and home furnishings stores (up 0.7 percent), among others. The segment with reduced sales in April was building materials and garden supplies, down 1.0 percent.

Overall, consumers continue to spend modestly, with retail spending up 3.0 percent over the past 12 months. That is a decent pace, even if there remains a sense that the public might be holding back from even stronger spending. The year-over-year rate in February, for instance, was 3.6 percent.

It is also important to recognize the impact that lower gasoline prices have had on the data. Reduced prices have decreased gasoline station sales by 9.4 percent. Excluding gasoline stations, retail sales were up 4.1 percent year-over-year. As such, spending is perhaps better than the headline number suggests.

retail

Reduced Auto Sales in March Pulled Retail Spending Lower

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The Census Bureau said that retail sales declined by 0.3 percent in March, declining for the second time in the past three months. As a result, retail spending decreased by 0.6 percent in the first quarter of 2016, down from $449.7 billion in December to $446.9 billion in March. This suggests that consumer spending will not be the boost to real GDP that we saw in the fourth quarter, and it is yet another sign that Americans might be holding back a little in their purchases in light of recent economic anxieties. Along those lines, the year-over-year growth rate for retail sales fell from 3.7 percent in February to 1.7 percent in March. Read More

retail

Retail Spending Declined in February for the Second Straight Month, Led by Gasoline Station Sales

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The Census Bureau said that retail sales declined by 0.1 percent in February, but perhaps more importantly, it also reported that spending fell 0.4 percent in January. It was originally reported to be a gain of 0.2 percent. On the surface, this release indicates softer-than-desired spending so far in 2016. Yet, the year-over-year pace remains decent, up a modest 3.1 percent since February 2015.

To more fully understand these data, however, it is important to dig a little deeper. Much of the decline over the past two months has stemmed from reduced gasoline prices. Indeed, the average price of regular conventional gasoline, according to the Energy Information Administration, fell from $1.93 per gallon the last week of December to a seven-year low of $1.64 a gallon in mid-February. Along those lines, gasoline station sales – which are reported in nominal dollars – fell 3.3 percent and 4.4 percent in January and February, respectively. Excluding gasoline station sales, retail spending rose 0.2 percent in February, and on a year-over-year basis, that figure was 4.8 percent. That suggests a much healthier pace of consumer spending than the headline number might indicate. Read More

Monday Economic Report – December 14, 2015

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NAM manufacturing outlook index - dec2015The NAM Manufacturing Outlook Index declined from 45.8 in September to 40.5 in the most recent survey, falling below the historical average for the second consecutive quarter. Nearly 60 percent of respondents were either somewhat or very positive about their own company’s outlook, a sharp decline from the 91.2 percent who said the same thing one year ago. Manufacturers continue to wrestle with global headwinds and lower commodity prices, which likely dampened enthusiasm in this report, especially regarding export expectations, with roughly 58 percent suggesting that their firms were negatively impacted by the global slowdown. Capital spending and hiring plans pulled back materially from the prior survey, which we also saw in the latest job openings numbers. On the positive side, manufacturing leaders anticipate 1.4 percent growth in sales and production over the next 12 months. While this pace remained well below the 4.5 percent pace observed in December 2014, it does suggest that activity remains positive, albeit less than desired.

The top business challenge was an unfavorable business climate, cited by 77.3 percent of manufacturing respondents. Indeed, manufacturers continue to be frustrated with the lack of comprehensive tax reform and with a perceived regulatory assault on their businesses. Rising health care and insurance costs were also a major concern, cited by 72.2 percent as a primary challenge. Manufacturers see health insurance costs increasing eight percent over the next 12 months. Small and medium-sized firms anticipate health insurance premiums to jump faster in the next year than large manufacturers do, with rates rising 8.6 percent and 6.5 percent, respectively.
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October Retail Sales Improve Slightly After Stagnant August and September

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Retail sales rose 0.1 percent in October, improving ever-so-slightly from being unchanged in both August and September. As such, this report continues to reflect anxieties among consumers, with some hesitance for them to open their pocketbooks on recent economic weaknesses. Indeed, retail spending has grown just 1.7 percent over the past 12 months, a modest but less-than-ideal pace. Read More

Growth in Retail Sales Slowed in August

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The Census Bureau said that retail sales rose 0.2 percent in August, slowing from the 0.7 percent growth rate seen in July. It was the fourth increase in the past six months (with the other two being unchanged), as consumer spending has rebounded somewhat from softness earlier in the year. The year-over-year pace has improved from a disappointing 1.3 percent pace in April to 2.2 percent in August; although, that was down from 2.6 percent in the prior report. Nonetheless, the public remains cautious in their willingness to open their pocketbooks. As an illustration of that point, retail sales growth was 4.9 percent year-over-year twelve months ago, or almost double the current pace. Read More

Retail Sales Bounced Back in July after Being Unchanged in June

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The Census Bureau said that retail sales increased 0.6 percent in July, bouncing back from being unchanged in June. The prior month’s softness had been unexpected, making the rebound in July more welcome. The year-over-year pace improved from a disappointing 1.3 percent pace in April to 2.4 percent in July. Needless to say, even that modest rate of consumer spending suggests that the public remains somewhat cautious in their willingness to open their pocketbooks. As an illustration of that point, retail sales growth was 4.7 percent year-over-year in November, or almost double the current pace. Read More

Retail Sales Pulled Back Again in June

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The Census Bureau said that retail sales fell by 0.3 percent in June, pulling back from the 1.0 percent gain seen in May. The decline was unexpected, with a consensus anticipation of a slight increase. It was the first decrease in retail spending since February, and it suggests that the public continues to remain somewhat cautious in their willingness to open their pocketbooks. The year-over-year pace was a disappointing 1.4 percent, down from 2.3 percent in May and well below the 4.7 percent rate observed in November. Read More

Monday Economic Report – June 15, 2015

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Here are the files for this week’s Monday Economic Report: 

Manufacturers and other businesses came into this year with a lot of optimism, particularly given robust growth in the second half of last year. Instead, economic growth has been disappointing year-to-date. A number of significant headwinds have challenged the sector, including a stronger dollar, lower crude oil prices, the residual effects of the West Coast ports slowdown and cautiousness in consumer spending. Much of this can be seen in recent GDP and production figures, which have reflected recent declines in activity, particularly in the first quarter. Read More

Retail Sales Increased 1.2 Percent in May, Bouncing Back from a Softer April

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The Census Bureau said that retail sales increased 1.2 percent in May, bouncing back from a softer April, where spending rose just 0.2 percent. On a year-over-year basis, consumers spent 2.7 percent more today than 12 months ago, a modest gain that represents a notable improvement from the 1.5 percent pace in the prior report. Still, these data continue to reflect the softer economic environment seen so far in 2015, with the year-over-year pace down from 4.7 percent in November.

With that said, these data have been skewed by changes in gasoline prices over the past year. Lower prices have resulted in a drop in sales, which are expressed in nominal terms, of 18.6 percent since May 2014. Retail spending excluding gasoline station sales was up 5.2 percent year-over-year in May, up from 4.3 percent in April. This suggests a stronger pace of overall consumer spending than the headline figure might indicate. Read More