Retail sales did not have much to show for in the first month of the third quarter. The Commerce Department reported Wednesday that retail sales were flat at 0.0% change in July. This fell short of the economists’ expectations of a 0.2% growth, according to Bloomberg, but was within the range of -0.1% to 0.4%. This reading also fell short from the previous month’s 0.2% retail sales growth.
Lower auto sales in July were one reason for the muted report. Taking out autos, retail sales were still up by only 0.1%, while the consensus estimate was all the way up at 0.4% growth. June’s reading was also up by 0.4%.
Retail sales have disappointed since April, when the they were up 1.1%. In May, retail sales increased by 0.5%, followed by weaker growth in June and none in July.
Sales increased in areas such as clothing and accessories, health, personal care, food and beverage, sporting goods, food service, and drinking places. However, sales decreased in mostly big ticket areas such as general merchandise, furniture, appliance stores, home furnishings, electronics, and nonstore retailers.
What is at issue now is that it seems likely that GDP expectations will have to be adjusted down to reflect the lack of consumer spending.
Economists are hoping that the third quarter continues to rebound from the second quarter. With July being the first month of the quarter, this report gets the third quarter off to a crummy start.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
