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 increased 0.1% in June
Posted Under: Data Watch • Retail Sales
Supporting Image for Blog Post

 
Implications:  The soft patch continues to dissipate.  Retail sales beat consensus expectations in June, increasing 0.2% including revisions to previous months.  Excluding gas – everyone knew gas sales would be down due to the drop in oil prices – retail sales were up a solid 0.3% in June.  Moreover, retail sales are still being adversely affected by the supply-chain disruptions coming from Japan.  Motor vehicle sales bounced back in June, rising 0.8%, but they still have a long way to go as production conditions in Japan rebound.  In the past year, total retail sales are up 8.1% and sales excluding autos are up 7.9%.  "Core" sales (which exclude autos, building materials, and gas) were up 0.1% in June and are up 5.5% in the past year.  Factoring-in services as well as inflation, real consumer spending will probably be up at a 1% annual rate in Q2.  Consumer spending continues to rise for two key reasons.  First, earnings are growing due to more jobs, more wages per hour, and more hours per worker.  Second, consumers' financial obligations (debt service plus other recurring payments like rent, car leases, homeowners' insurance, and property taxes) are now the smallest share of disposable income since 1994.  Add on top of that a recovery in the auto sector as Japan heals, and the future continues to look bright for retail sales.

Click here to read the entire report.
Posted on Thursday, July 14, 2011 @ 12:34 PM • 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.
 
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 © 2025 All rights reserved.