Tuesday, July 17, 2012
Retail sales slipped unexpectedly in June
The U.S. retail sector registered an unexpected decline in sales volume in June, slipping 0.5 percent rather than analysts' projections of an up to 0.2 percent gain.
June's dip followed May's 0.2 percent slip in retail sales, according to the U.S. Commerce Department.
The recent sluggishness for U.S. jobs growth may have had a negative impact on consumer demand as 9 of 13 major retail sales categories declined.
"People are just pulling back, and you're not likely to see a significant pickup from here," said Michael Carey, chief economist, North America at Credit Agricole CIB to Bloomberg. "This was certainly a slowdown from the first quarter," he said.
Retail sales decreased 1.6 percent at building materials outlets, 0.7 percent at department stores, 0.8 percent at furniture outlets, and 0.6 percent at auto and parts dealers, with the biggest drop in a year for the furniture sector, and cars and light trucks selling at a faster pace over May.
Consumer spending was up 2.5 percent in the first quarter.
"We expect the macroeconomic environment for the balance of 2012 to continue to be influenced by external concerns, including fiscal and monetary policy in U.S and European debt crisis which is eroding business and consumer confidence," said Vernon Nagel, chairman and CEO of lighting fixture manufacturer Acuity Brands Inc. in a recent earnings call.
For the full Bloomberg story: bloomberg.com
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