IHS Global Insight Notes Retail Sales Rebound
Procurement officers not expected to make any sudden moves on inventory
Latest NewsQ4 2017 Rail/Intermodal Roundtable: Improvements apparent; work remains The State of the DC Voice Market New ATA report takes a deep dive into the ongoing truck driver shortage Freedonia: Stretch film demand to grow 3.8% annually through 2021 Shippers ready to “bear the brunt” of higher trucking rates as ELD implementation set to begin Dec. More News
Latest ResourceRisk and Resiliency 2.0: Three New Keys to Managing Supply Chain Risk Thursday, October 19, 2017 | 2pm ET
According to IHS Global Insight U.S. economist Chris Christopher, the gains were broad and across most sectors.
“Most major retail sectors had unusually strong gains,” he said. “It is apparent that after a cautious second quarter, shoppers decided to head to the mall and open their wallets despite rising gasoline prices.”
He also noted that the heat wave that started at the end of June and continued into July may have assisted clothing, sporting goods, and building material outlet sales.
“But overall, we are taking a cautious view on the spending so far,” said Christopher. “We don’t expect procurement officers to make any sudden moves on inventory. Lean logistics will continue to prevail.”
This is a good report on the retail sales front. It indicates that consumers came back after hunkering down. The July retail sales numbers are a positive development, but Americans are not throwing caution to the wind. It indicates the fragility of spending patterns. Robust and enduring consumer spending growth will happen once job prospects improve and consumer confidence jumps out of recession territory.
IHS Global Insight is now forecasting consumer spending adjusted for inflation to increase 2.0 percent in the third quarter, and the back-to-school retail sales season is looking significantly brighter.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Supply Chain Management Review Magazine!Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
View More From this Issue