Wednesday, July 14, 2010

Retail Sales Fall 0.5% – Auto Sales and House Related Sectors Drive Decline

In June, retail sales fell for the second straight month, declining 0.5%. These two drops came after seven months of increases, including a very strong gain in March. Though the sales report is certainly weak, details are a bit more positive. The index was driven down largely due to a drop in auto sales, which tend to be very volatile. Core sales, which exclude gasoline and autos, rose by 0.1%. Furthermore, total sales continued to be held back by continued declines in sales at building supplies and furniture stores. Both of these sectors have been harmed by the fallback in home purchases following the end of the home buyer tax credit. Retail sales are clearly decelerating; however, they will likely continue to grow modestly. This pattern is consistent with other indicators of late that have shown a softening of economic recovery.

From a year prior, total sales were up 4.8%, compared to 8.7% growth in April. Core sales were up 3.9% from a year earlier, compared to being up 5.0% in April.

10.07.14 (Source: Census Bureau)

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