US Retail Sales Rise on Car Sales
US retail sales were up 1.4% in October – the first month of the 4th quarter – a better figure than the 0.9% predicted by Wall Street. However, September’s decline was revised lower to show a 2.3% drop, which means that sales have been down overall over the last two months. Also, without purchases of automobiles, which were up 7.4% on the month, October’s figure showed only a 0.2% increase in sales, which was smaller than expected. It was however the third month in a row that core retail sales were up.
The retail sales data is an important measure of how consumer spending, which makes up about 70% of US GDP, is faring. There are major concerns that with unemployment above 10%, and consumer confidence falling that the holiday shopping season could be a poor one, limiting the strength of the economic recovery.
Provided by: US Department of Commerce
Empire Manufacturing Index Takes a Step Back in November
From the Release: “The Empire State Manufacturing Survey indicates that conditions for New York manufacturers improved in November, but at a somewhat slower pace than in October. The general business conditions index fell 11 points, to 23.5. The indexes for new orders and shipments posted similar declines. Pricing pressures eased, with the prices paid index positive but lower than last month and the prices received index rising to a level just below zero. Employment indexes fell from October’s elevated levels, remaining slightly positive. Future indexes conveyed an expectation that activity and employment would improve in the months ahead and that both input and selling prices would increase significantly.”
Provided by: Federal Reserve Bank of New York
Business Inventories Decline Less Than Expected in September
US inventories fell in September at half the rate of decline expected. Stockpiles were drawn down 0.4% to a seasonally adjusted $1.303 trillion, following a 1.6% decline in August. The slowdown came as there was an increase in the number of unsold cars following the expiration of the government’s incentive program to sell vehicles. Inventories of cars rose 3.8%, as sales tumbled. That decline in car sales led overall sales to be down 0.3% to $988.0 billion. The inventory-to-sales ratio held at 1.32.
Provided by: US Department of Commerce