Skyline Advisors
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter

Partners for Strategic Transactions

Retail Spending Up 4.2% Over the Last Year

12/19/2018

 
​Last week, the Commerce Department’s retail spending report showed a notable gain in retail spending for the trailing twelve months through November, showing strong consumer demand heading into the holidays. Also, the Institute for Supply Management (ISM) released its semi-annual economic growth survey, revealing that although purchasing and supply managers expect revenue and investment growth, they believe 2019 will be a weaker year than 2018. Lastly, the Labor Department shared the November Consumer Price Index, which showed flat growth from October and a 2.2% annual increase. This week, the Federal Open Market Committee will meet on Tuesday and Wednesday to determine whether a rate hike is justified.
  • Leading into the holiday shopping season, Americans’ retail spending climbed 0.2% during November and 4.2% for the trailing twelve months to $513.5 billion, according to the Department of Commerce. Excluding the volatile food and energy categories, the figure rises to a 0.5% monthly increase in November. Rising wages and elevated consumer confidence contribute to the large annualized increase in spending. The Commerce Department’s report also goes on to show strong U.S. consumer demand despite rising interest rates, a widening trade gap, and a cool-down in the manufacturing sector.

  • The ISM released its semi-annual economic growth survey, detailing expected economic and manufacturing growth in 2019 through increased sales, investment and hiring. However, many business owners are becoming wary about next year being better than the last, citing rising costs for labor and materials by way of tariffs and a historically low unemployment rate. Costs are expected to increase by 2.5% within the manufacturing sector and 3.2% outside, placing increased pressure on profit margins. Furthermore, 65% of executives say they are evaluating new supply sources to resolve tariff-related issues. Though, compared with May 2018’s survey, fewer respondents are concerned about tariffs raising the prices consumers pay or causing disruptions in the supply chain.

  • November’s month-to-month Consumer Price Index growth reading was the lowest in eight months, largely due to the sharp decline in gasoline prices. The Labor Department’s monthly report shows the CPI stayed flat in November following October’s 0.3% monthly rise. For the twelve months through November, the CPI gained 2.2%, down from October’s 2.5%. Excluding food and energy products, the Index grew 0.2% monthly and 2.2% annually. Both annual figures are above the Fed’s target rate of 2.0%. Measures of the inflation rate have been watched closely recently, as any sustained increase in inflation gauges will prompt the Federal Reserve to continue its path of rate hikes for this month and 2019.


Comments are closed.

    Archives

    May 2022
    January 2022
    November 2021
    August 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    December 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All
    Auto Sales
    Bankruptcies
    Capital Markets
    Confidence
    Corporate Profits
    Debt
    Economy
    GDP
    Holiday
    Housing
    Industrial Production
    Inflation
    Initial Public Offerings
    Interest Rates
    Inventories
    Jobs
    Manufacturing
    Mergers And Acquisitions
    Middle Market
    Prices
    Private Equity
    Productivity
    Retail Spending
    Rural Economy
    Small Business
    Stock Market
    Taxes
    Trade
    Venture Capital
    Wages

    RSS Feed

Picture
​Skyline Advisors is a division of Ideation Ventures, Inc. Services involving securities are offered through M&A Securities Group, Inc.4151 N Mulberry Drive Suite 252, Kansas City, MO, 64116  (“MAS") . Services involving real estate brokerage are offered through Berkshire Hathaway HomeServices Ambassador Real Estate ("BHHS"). Skyline, MAS, and BHHS are separate entities. 
​

COPYRIGHT 2020. ALL RIGHTS RESERVED.
Virtual Data Room
Company   Services   Team   Transactions   Industries   Reports   News
Photo used under Creative Commons from inkknife_2000 (8.5 million views +)
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter