–Ex Auto & Gas +0.4%; Autos +1.1%, Gasoline +1.6% as Prices Rise
By Joseph Plocek
WASHINGTON (MNI) – U.S. December retail sales report fell short of
expectations, as smaller retailers evidently did not enjoy results as
robust as those of department stores.
December retail sales printed a little under expectations at
+0.6% overall, +0.5% ex auto, and +0.4% ex auto and gas. Also, November
ex-auto sales was revised lower to +1.0%.
The data still suggest consumption was growing fast in Q4, but Q4
real GDP estimates probably will remain in the +3% area after this
disappointment.
December marked the sixth month in a row of decent sales gains.
Over the year sales are up 6.65% for 2010 after -6.5% in 2009 and -0.8%
in 2008.
December sales were held down by -0.6% in electronics, -0.6% in
food, and -0.2% in clothing (severe seasonal adjustments took away about
40% of the unadjusted clothing gain). Sales gains were seen in furniture
at +1.0%, building materials at +2.0% (a rebound after -1.1% in
November), healthcare at +1.6%, and sporting goods at +0.4%. Restaurants
posted a 0.2% gain.
Autos printed +1.1% and were significantly higher in Q4. Gasoline
printed +1.6%, mainly on price gains.
Nonstore retailers – electronic shopping and mail order outlets –
posted +2.6%, their best gain since April 2008. This illustrates the
recent shift to shopping at home as a way of searching for bargains.
Overall sales had a good December and full-year showing, just not
as robust as chain store results alone suggested. This might signal that
smaller shops were not selling as fast, perhaps because they failed to
have significant promotions.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
