Retail News Breaks Archives
Retail sales drop in June for second straight month
July 14th, 2010
WASHINGTON – Retail sales slipped in June for the second consecutive month, fueling fears that the economy’s turnaround will lose steam over the remainder of the year.
Sales dipped 0.5% in June, the Commerce Department reported today. The decline came on the heels of a 1.1% drop in May.
Last month’s spending was dragged down by decreased auto sales and sliding gas prices. Excluding those figures, retail sales rose 0.1%.
"Moderate growth these last few months proves that consumer uncertainty remains," said National Retail Federation chief economist Jack Kleinhenz. "A slow-growing economy and high unemployment rates will continue to hinder consumers’ decisions to spend on discretionary items."
As in May, June retail sales showed modest month-to-month growth but solid year-over-year growth in most sectors. Health and personal care stores sales increased 0.5% seasonally adjusted over May and 2.2% unadjusted year-over-year.
"Retailers will continue to utilize strategies to meet the demands of today's budget conscious consumer and to strengthen operational efficiencies, which will benefit them as the economy grows," said Retail Industry Leaders Association president Sandy Kennedy.
The latest monthly sales decline follows a U.S. Department of Labor report that despite adding 83,000 private-sector jobs in June, the overall economy shed 125,000 positions as 225,000 temporary census jobs were eliminated.