Gasoline Ripple Effects Contribute to Lower June Retail Sales Figures
Partly sunny or partly cloudy? The Dow Jones industrial average went over 14,000 today, one indication of positive “investor sentiment.” However, according to the New York Times coverage, expected quarterly financial results to be reported this week might easily change that sentiment.
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.