Subscribe to our free, weekly email newsletter!


Commerce, NRF report slight gains in April retail sales

By Jeff Berman, Group News Editor
May 13, 2013

While retail sales were up in April, the growth rate was less than impressive based on data released today by the United States Department of Commerce and the National Retail Federation (NRF).

Commerce reported that April retail sales at $419.0 billion were up 0.1 percent over March and up 3.7 percent compared to April 2012. Total sales for the February through April period were up 3.7 percent annually.

The NRF reported that April retail sales, which exclude autos, gas stations, and restaurants, rose 0.6 percent on a seasonally-adjusted basis from March and were up 3.9 percent on an unadjusted basis annually. NRF officials said that improving employment data and an uptick in housing prices, coupled with a record-breaking stock market, helped to drive April sales.

“In the face of higher taxes and sequester, consumers provided the economy a bit of a reprieve this month,” NRF President and CEO Matthew Shay said in a statement. “Despite colder spring weather and an early Easter, consumers shopped in April, demonstrating an inherent resiliency even as the economy faces serious headwinds, including stagnant job and wage growth.”

As LM has reported, with retail sales growth modest at best, there still remains a mixed bag of signals and headwinds on the economic front, including a slightly declining unemployment rate, improving consumer confidence data, as well as encouraging automotive sales and housing data.

These things are occurring, though, against the backdrop of sluggish GDP growth and general uncertainty regarding the economy.

The continuing trend of slight or flattish sequential retail sales increases remains largely intact due to fairly even retail spending at a time when retailers remain cautious on the inventory planning side and postponing commitments until the until the economic outlook becomes clearer, while they are risking stock outages by having very lean inventories.

“After a poor showing in March, retail sales performed relatively well in April,” wrote IHS Global Insight Director of Consumer Economics Chris G. Christopher, Jr. in a research note.  “The headline number was better than expected but still an anemic growth rate of 0.1 percent. Retail sales excluding gasoline and autos surged ahead at a robust 0.6% rate in April, after a flat March. Consumers started purchasing more discretionary items in April as pump prices started to fall. Most retail categories had a pretty good April with the exception of gasoline stations, grocery and drug stores. This is a good report. The first quarter was rough for many American households with the expiry of the payroll tax cut in January, rising pump prices in February, and elevated discussion of sequester issues in early March. “

Christopher added that consumers are taking advantage of falling pump prices, a relatively better employment market, modest consumer goods price increases, a strong stock market, and a housing market that seems to be gaining traction. But he noted that this is not a consumer lead recovery by any means, as many households face considerable headwinds. 

At last month’s National Shippers Strategic Council (NASSTRAC) Annual Conference in Orlando Florida, shippers and carriers noted that the economy was steady but choppy, which speaks to these flattish retail sales numbers.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA