Subscribe to our free, weekly email newsletter!


Retail sales show slight increases, according to Commerce and NRF

By Jeff Berman, Group News Editor
August 13, 2010

A sputtering economy received a small dose of good news, with retail sales showing gains in July, according to data released by the United States Department of Commerce and the National Retail Federation (NRF).

July retail sales, which include non-general merchandise like automobiles, gasoline, and restaurants, at $362.7 billion, were up 0.4 percent from June and up 5.5 percent year-over-year. Total retail sales from May through July of this year were up 5.9 percent year-over-year, according to the Department of Commerce.

The NRF reported that July retail sales (which exclude automobiles, gas stations, and restaurants) increased 3.1 percent unadjusted year-over-year and dipped 0.2 percent seasonally-adjusted compared to June.

“Household spending remains tepid amid concerns about economic stability,” said NRF Chief Economist Jack Kleinhenz in a statement.  “Current data on the economy is mixed which signals that retailers will continue planning with caution until a long-term trend can be established.”

While the first half of 2010 showed a fair amount of promise in terms of sustained economic growth. The second half, so far, has been a different story, with unemployment at 9.5 percent, sluggish consumer spending, and declining volumes in some modes of freight transportation. But even with signs of volumes weakening, they still remain above dismal 2009 levels. One driver for this is due to manufacturers and retailers slowly building up inventories after deliberately keeping them low for months to better match up with low demand levels during the recession.

“We are still fairly positive about things in general in terms of the recovery happening, but there will be fits and starts,” said Eric Starks, president of freight transportation forecast consultancy FTR Associates, in a recent interview. “That is what we are seeing now.”

A “wait and see” approach to the economy is going to be required over the coming months, said Starks, with a better idea of where things likely stand possible in September. Whether the recent downward indicators are truly an indication of things to come—or lead to a double-dip recession of some sort—is still to be determined, he said.
And things like a fluctuating stock market, coupled with economic unrest in Europe, do little to help with overall economic confidence as well, noted Starks.

Department of Commerce Secretary Gary Locke said in a statement that the increase in retail sales shows that overall economic activity is still growing, albeit at a pace slower than desired.

“The administration understands that too many Americans continue to struggle,” said Locke. “President Obama and this department are committed to continuing to promote policies that foster job creation and a strong and sustainable economy.”

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

The PMI, the ISM’s index to measure growth, increased 1.8 percent to 57.1 in July. This is 1.8 percent higher than the 12-month average of 55.3. The PMI has grown in 18 of the last 20 months, with economic activity in the manufacturing sector expanding for the last 14 months as the overall economy was up for the 62nd consecutive month.

YRC Worldwide, whose regional and long-haul units provide the second-largest LTL capacity in the trucking industry, narrowed its second-quarter loss to $4.9 million on $1.32 billion revenue, compared with $15.1 million loss on $1.24 billion revenue in the year-ago quarter.

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA