Meanwhile, new U.S. Department of Commerce data for June suggest that consumer spending has been significantly affected by the rising cost of gasoline. Overall retail sales declined 0.9%, the biggest drop in two years. Rising energy costs in general contributed to higher costs for imports (1% higher overall); while the housing industry slump has affected sales of home goods and furnishings (down 3%) and garden supplies (down 2.3%); and car sales dropped 2.9%.

Import prices have risen steadily for the previous five months, again due to higher petroleum prices, boosting the inflation rate slightly. Industrial production rose 0.5% in June.

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Curt Barry is president of F. Curtis Barry & Co., a fulfillment consulting company assisting multichannel businesses with order management and inventory management systems evaluation and implementation; online at: http://www.fcbco.com.

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