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  • US Retail Sales Dip Amid Inflation, Shifting To Service Spending | Commercial and economic news

US Retail Sales Dip Amid Inflation, Shifting To Service Spending | Commercial and economic news

By on August 22, 2021 0

The U.S. Department of Commerce reported a 1.1% drop in retail sales in July as concerns over the delta variants of the coronavirus reduced spending.

Retail sales in the United States fell in July as American consumers stayed at home, American consumers shifted spending to restaurants, bars and gas stations, and the delta variants of the coronavirus increased in parts of the country. ..

Retail sales in July were down 1.1% from June, according to data from the US Department of Commerce. Indicated Tuesday. Retail sales for June were revised up 0.7%.

Retail sales fell 1.5% from June, but still rose 13.3% from a year ago, according to the data.

As a sign of the continuing economic recovery in the United States after the worst days of the coronavirus pandemic, clothing and clothing accessories stores grew 43.4% from this period in 2020, and restaurants and bars increased by 38.4% compared to last year. Increased.

Sales at automobile and parts dealers fell 2.2% in June, followed by 3.9% in July. This was compressed by inventory limits and rising prices.

The hot summer climate in the United States also affected e-commerce, down 3.1% in July, a significant slowdown from the previous month.

Falling retail sales indicate consumers are more cautious about where and how to open their wallets, and concerns about rising inflation may also dampen spending.

Goldman Sachs analyst Jan Hatzius said: “Retail sales report details show consumption is fast in the second quarter, but with the easing of disposable income and the advent of the Delta variant in the second quarter. third trimester. It suggests a lot of resistance. “Watch out for Tuesday mornings.

The Dow Jones and S&P 500 fell from record highs on Wall Street following weaker earnings reports from major retailers The Home Depot and Wal-Mart.

Home Depot’s share fell 4.6% after same-store sales in the United States fell for the first time in two years. This drop was a sign of a spooky home improvement boom. This culminated in a pandemic during a few months of blockade as Americans focused on a do-it-yourself home improvement project.

Home Depot’s plummeting earnings report also caused smaller rival Lowe’s shares to drop 4.4%.

Wal-Mart’s share in the world’s largest retailer also fell 0.3%, even after raising its annual forecast for same-store sales in the United States. But just because Americans aren’t spending money in retail stores doesn’t mean they don’t, analysts say.

“Retail reports are generally a reliable indicator of consumer health, but they are incomplete due to the significant shift in spending from consumers to services,” said Lydia Busur, US economist at Oxford Economics. We continue to show the big picture. ” Tuesday.

The S&P 500 and the Dow Jones closed at record highs on Monday. Investors continue to balance strong optimism about the economic recovery with concerns about the resurgence of COVID-19 cases.

US Retail Sales Dip Amid Inflation, Shifting To Service Spending | Commercial and economic news

Source link US Retail Sales Dip Amid Inflation, Shifting To Service Spending | Commercial and economic news


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