–Ex Auto & Gas -0.2%; Autos-Parts -0.6%, Gasoline -1.8%
By Joseph Plocek
WASHINGTON (MNI) – U.S. June retail sales printed -0.5% overall,
-0.4% ex auto, and -0.2% ex auto and gas, all showing far more weakness
than private economists expected.
Sales in June were pretty much weak across the board, with only
necessities gaining. Food stores printed +0.1% and clothing +0.2%.
Most other areas declined, some showing large drops. Autos posted
-0.6%, furniture -0.8%, electronics -0.8%, building materials -1.6%,
healthcare -0.7%, sporting goods -1.6%, and restaurants -0.2%. Gasoline
printed -1.8%.
Adding to the weak tone of the report, April sales were revised
lower (to -0.5% overall), and May’s decline was little changed (-0.2%
overall).
For Q2, ex-auto sales show a loss of momentum as the period
unfolded. Their average for the quarter is below the March level,
suggesting a severe slowing in consumption. With a low June CPI
expected, deflated sales will probably cut Q2 consumption.
The last time sales fell for three months or more in a row was
during the 2008 recession.
One point of light was nonstore retail sales at +0.5% after +1.0%
in May. These are mail orders and electronic shopping and might be
getting a boost from shoppers front-running recent attempts to add sales
tax to some Internet orders.
**MNI Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
