Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  Retail sales grew 0.1% in December
Posted Under: Data Watch • Retail Sales
Supporting Image for Blog Post

 
Implications:  Retail sales grew less than the consensus expected in December, but are still consistent with solid economic growth.  Surprisingly, autos were the strongest part of sales, which signals less discounting in that sector in December than previous reports suggest, a bullish sign of consumer demand for big-ticket items.  The other strong sector for sales in December was building materials, which may have been a function of unusually warm weather in much of the country.  The largest drag on December sales was at gas stations, due to lower prices at the pump.  Sales were also down at general merchandise stores and for electronics/appliances, which probably reflects steep discounting amid Christmas sales competition.  Overall sales are up in 17 of the last 18 months.  Sales declined ex-autos, but that's the first time in 19 months.  This kind of consistent and continuous growth is very rare.  Typically, retail sales have three or four negative months every year, even in good years.  "Core" sales, which exclude autos, building materials, and gas, fell for the first time in 17 months, but "core" sales for Q4 were up at a 5.3% annual rate versus the Q3 average.  In other recent retail news, chain store sales continue to look good, up 3.3% versus a year ago according to Redbook Research and up 2.8% according to International Council of Shopping Centers.  Remember, these figures show same-store sales; total sales are up more than that.  In other news this morning, initial claims for unemployment insurance increased 24,000 last week to 399,000. The four-week average is 382,000, which is much closer to the underlying trend.  Continuing claims for regular state benefits rose 33,000 to 3.63 million.  The economy is getting better, but it never does so in a straight line.

Click here for the full report.
Posted on Thursday, January 12, 2012 @ 10:29 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
 PREVIOUS POSTS
Nonsense Arguments About Jobs
All The Emperors Are Naked - by Brian S. Wesbury
Non-farm payrolls increased 200,000 in December
States Cut Unemployment Benefits
Wesbury 101 - Fed Stimulus Means No Recession
ISM Services index increases to 52.6
Deficit Not Cyclical says the CBO
The ISM manufacturing index increased to 53.9 in December
Bryce Gill spends winter break with us
We Were Too Optimistic
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011
Expand 20102010

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.