June Retail Sales Disappoint

The Commerce Department reported lower than expected retail sales for the month of June, an indication that the effects of the rebate checks may have already dissipated.

The advance estimate for June sales rose by just 0.1 percent following a downwardly revised gain of 0.8 percent in May where much of the prior month's gain was attributed to the distribution of almost $50 billion in government stimulus.

Auto sales plunged 3.6 percent last month, now down 10.5 percent on a year-over-year basis while rising prices at the pump led gasoline station sales 4.6 percent higher lin June, now up 24.5 percent from year ago levels, all of this increase due to higher fuel prices amid weakening demand.

Excluding automobile sales, overall sales rose 0.8 percent in June, however, if just gasoline sales are excluded, overall sales dropped.

Comments

[billddrummer:]

Is it time for another round of stimulus checks?

2008 Jul 16 11:25 AM

[billddrummer:]

A followup--"If just gasoline sales are excluded, overall sales dropped." I submit that people are shifting buying patterns as gasoline takes a larger chunk out of the monthly budget. The $20 that used to be for movies and popcorn is now going into the gas tank. The $40 that used to go for a new video game is now $20 for movies and popcorn, with $20 going into the gas tank.

It's a reaction to reality on the ground. Spending hasn't changed; it's just that gasoline is taking more cash than ever.

2008 Jul 16 11:29 AM

[gordon:]

That's good enough for retail stocks to soar today! Bravo!

2008 Jul 16 01:43 PM

[quetzalcoatl:]

Comes the revolution, you'll all be sorry.

2008 Jul 16 08:11 PM

[User 230393:]

Amazing

2008 Jul 22 11:58 AM