- Kristopher Fraser |
Reuters has reported that U.S. retail sales have fallen a second straight month in a row. Retail sales declined in June, tempering expectations for acceleration in economic growth for the second quarter.
The Commerce Department said that sales fell 0.2 percent, caused by declines in receipts at service stations, clothing stores and supermarkets. Americans also cut back spending on restaurants, bars and hobbies.
There are signs that a recession could be upon us (auto delinquency rates surging, Americans living paycheck to paycheck, subprime borrowing, etc.) However, the U.S. is far from reaching the conditions that caused the great recession of the mid to late '00s.
In more promising news, retail sales did rise 2.8 percent year-on-year in June.
Excluding automobiles, gasoline, building materials and food services, retail sales slipped 0.1 percent last month after being stagnant in May. These core retail sales correspond most closely with the consumer spending component of gross domestic product.
Many consumers are being more cautious about spending given the turbulence of Trump's presidency and an unclear picture of what it could mean for America's economic future. As negotiations for NAFTA take place and other economic policies like healthcare are on the table, consumers are holding their pocketbooks close. For now, the U.S. is still retaining a level of economic stability.