US retail sales stall on auto dealers’gain | Fin24
 
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • South African Airways

    A draft rescue plan calls for the injection of a further R4.6 billion into the struggling flag carrier.

  • Facebook

    Employees criticise Mark Zuckerberg’s inaction over Donald Trump's comments.

Loading...

US retail sales stall on auto dealers’gain

Aug 12 2016 15:27
Michelle Jamrisko

Washington - Sales at US retailers were little changed in July as Americans flocked to auto dealers at the expense of other merchants.

The stalling of purchases followed a 0.8% gain in June that was stronger than initially estimated, Commerce Department figures showed Friday in Washington.

The median forecast in a Bloomberg survey called for a 0.4% rise in July. Excluding cars, sales retreated 0.3%, the most since the start of the year.

Improving car sales drained enough cash from consumers’ accounts to cause demand at eight of 12 other major retail categories to fall. While households have been bolstered by higher stock and home values, stronger wage growth would go a long way in improving purchasing power.

“It is a bit disappointing, at least to start the quarter,” said Kevin Cummins, an economist at RBS Securities Inc. in Stamford, Connecticut. “Labour income is the key. Confidence seems to be moving sideways.”

Estimates in the Bloomberg survey ranged from no change to a 0.9% gain. June’s reading was revised from an initially reported 0.6% increase.

Another report from the Labour Department showed wholesale prices unexpectedly fell in July by the most in almost a year; a sign inflation is likely to stay muted.

The 0.4% drop in the producer-price index, the biggest since September, followed a 0.5% gain the prior month.

Cheaper fuel

Gasoline service station receipts dropped 2.7%, while sales weakened at sporting goods and hobby outlets, department stores, clothing merchants and restaurants.

Core sales, the figures that are used to calculate gross domestic product and which exclude such categories as auto dealers, gasoline stations and building materials merchants, were also little changed last month after 0.5% increase in June.

Purchases at service stations fell 2.7% last month, the most since February. The Commerce Department’s data aren’t adjusted for changes in prices, so fluctuating fuel costs can affect filling-station receipts.
 
Sales of food and beverages at grocery stores declined 0.6%.

At motor vehicle dealers, purchases improved 1.1%, the most since April, after a 0.5% advance.

Fin24's top stories trending on Twitter:

us  |  retail sales  |  economy  |  economic activity
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...