Global| Jun 13 2012U.S. Retail Sales Again Are Weak
by:Tom Moeller
|in:Economy in Brief
Summary
That makes two consecutive months during which consumers lost their inclination to spend. Retail sales slipped 0.2% during May following downward revisions to sales during the prior two months. The April decline of 0.2% was revised [...]
That makes two consecutive months during which consumers lost their inclination to spend. Retail sales slipped 0.2% during May following downward revisions to sales during the prior two months. The April decline of 0.2% was revised from +0.2% reported last month and the 0.4% March gain was shaved from 0.7%. A 0.1% dip in May sales was expected according to Action Economics. Some strength in sales last month was provided by a 0.8% gain in sales of motor vehicles & parts (10.0% y/y). Less autos, retail sales fell 0.4% versus expectations of no change. April's decline of 0.3% was revised from +0.1% and March's gain of 0.5% was clipped from 0.8%.
Notable weakness in sales overall was provided by building materials, off 1.7% last month and by 2.3% in April. Also, lower gasoline prices caused a 2.2% decline (+0.6% y/y) in purchases at service stations. Less autos, building materials and gasoline, retail sales ticked up just 0.1% (4.3% y/y) in May after no change during April.
Discretionary spending fared better last month as evidenced by a 0.6% gain (4.0% y/y) in sales of home furnishings, appliances and electronics. Furniture store sales rose 0.4% (8.7% y/y) while appliance and electronics purchases recovered 0.8% (-0.1% y/y). Sales of apparel & accessory stores also recovered 0.9% (5.4% y/y) but that followed a steep 1.2% April drop. Still struggling were sales of general merchandise, off 0.5% (+0.7% y/y) for the third consecutive monthly decline. Food & beverages store sales fell 0.2% (+7.4% y/y) while sales of health & personal care stores slipped 0.1% (+1.7% y/y). Sales of nonstore retailers rose a strong 1.3% (12.4% y/y), about even with their gains during the prior three months.
The retail sales figure are available in Haver's USECON database. The Action Economics figures are in the AS1REPNA database.
| Retail Spending (%) | May | Apr | Mar | May Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Total Retail Sales & Food Services | -0.2 | -0.2 | 0.4 | 5.3 | 8.0 | 5.5 | -7.1 |
| Excluding Autos | -0.4 | -0.3 | 0.5 | 4.3 | 7.3 | 4.5 | -5.7 |
| Retail Sales | -0.2 | -0.3 | 0.3 | 5.0 | 8.2 | 5.8 | -7.9 |
| Motor Vehicle & Parts | 0.8 | 0.1 | -0.1 | 10.0 | 10.9 | 10.8 | -13.9 |
| Retail excluding Autos | -0.4 | -0.4 | 0.4 | 3.8 | 7.6 | 4.7 | -6.4 |
| Gasoline Stations | -2.2 | -1.4 | 0.4 | 5.5 | 17.7 | 14.7 | -22.0 |
| Non-Auto Less Gasoline | -0.1 | -0.1 | 0.5 | 4.9 | 5.9 | 3.2 | -3.4 |
| Food Service | -0.2 | 0.5 | 1.0 | 7.4 | 5.9 | 3.2 | -0.9 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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