Retail Sales Slip

Retail sales slipped for the second straight months as consumers tighten their belts.  Once again a gain was expected but the numbers courtesy of Barrons show otherwise.


The markets opened lower this morning possibly on this data but have since rebounded mid day off of the session lows.  It will be interesting to see if company earnings begin to show this weakness and if companies begin or in some cases continue to guide down future earnings.

• Retail sales in June were much softer than expected, including auto sales which contradicted manufacturers' numbers for the month. Retail sales in June fell 0.5 percent, following a 0.2 percent decrease in May (originally down 0.2 percent). Analysts forecast a 0.2 percent increase for June.
• Motor vehicle sales dropped 0.6 percent, following a 0.8 boost in May. In the latest month, unit new auto sales posted a moderate gain, which should show up in personal consumption expenditures later this month. 
• Excluding motor vehicles, retail sales decreased 0.4 percent after declining 0.4 percent in May (originally down 0.4 percent). Market expectations were for a 0.1 percent gain. Gasoline sales were a big factor, dropping 1.8 percent, following a 2.0 percent fall in May. 
• Sales excluding autos and gasoline in June slipped 0.2 percent, following a 0.1 percent dip in May (originally down 0.1 percent). Core sales showed widespread weakness in June.