Retail sales have dropped for the second consecutive month and the third month in the last four. Most economists believed that sales went up about .2% last month according to NPR but the Dow newswire thought they would go down .3%.
Instead they fell .5% in June from May. They are higher than last year’s numbers which were appalling. Retail sales in April fell .2% but were over-estimated to be a .1% gain.
It doesn’t take a rocket scientist to explain this. The jobs picture is bleak and the economy is slowing. There is no mystery and all the signs are there. I am certain that consumer confidence has a lot to do with it but the aforementioned issues are more significant.
Wholesale prices fell because of the drop in oil prices.
The hardest hit were retail and food service industries. Auto sales went up .8% in May but retail sales fell .4% in May (.3% drop in April) for the biggest decline in two years.
“Building and garden equipment sales dropped 1.7%, while food, health care, sporting goods and general merchandise stores also saw weaker sales. Sales from electronics, furniture, clothing and nonstore retailers–a category that includes online purchases–all rose.” [WSJ]
Read more at the WSJ