US: Weakness in retail sales persists - Wells Fargo
|June retail sales showed number below expectations. Analysts from Wells Fargo, explained that once again gasoline sales were down in the month.
Key Quotes:
“American consumers continued to disagree with themselves in June as consumer confidence has remained high but has still not translated into much higher consumption. Once again, nominal retail sales dropped in June, this time by 0.2 percent, driven by a 1.3 percent decline in gasoline sales, the fourth consecutive monthly decline for this sector of retail as gasoline prices continued to come down. However, gasoline sales were not the only culprit for the weakness. Food and beverage consumption declined 0.4 percent while clothing sales did so by 0.1 percent. Sporting goods sales were down 0.6 percent and remained the worst performing sector on a year-over-year basis, down 7.7 percent, non-seasonally adjusted.”
“On the positive side, motor vehicles and parts sales were up a third consecutive month, increasing 0.1 percent, and reversing the strong weakness shown during the first quarter of the year. On a year-earlier basis, motor vehicle sales were up 4.3 percent.”
“Although personal consumption expenditures are expected to bounce back during the second quarter of the year, the bounce back may not be as strong as what we were expecting if these numbers remain as they were originally published, which is a big if.”
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