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.
As reported in Supply Chain Management Review, the National Retail Federation recently announced that retailers are “stocking up and hoping for a stronger fall and winter than they saw last year.
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.
SC
MR
Latest Supply Chain News
- Despite American political environment, global geopolitical risks may be easing
- Joseph Esteves named CEO of SGS Maine Pointe
- Employees, employers hold divergent views on upskilling the workforce
- April manufacturing output slides after growing in March
- Q1 sees a solid finish with positive U.S.-bound import growth, notes S&P Global Market Intelligence
- More News
Latest Podcast
Explore
Topics
Latest Supply Chain News
- Despite American political environment, global geopolitical risks may be easing
- Joseph Esteves named CEO of SGS Maine Pointe
- Employees, employers hold divergent views on upskilling the workforce
- April manufacturing output slides after growing in March
- Q1 sees a solid finish with positive U.S.-bound import growth, notes S&P Global Market Intelligence
- World Trade Centers offers a helping hand to create resilient, interconnected supply chains
- More latest news