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Last Update: 14-Nov-12 09:14 ET
Retail Sales Fall in October, Effects from Sandy are Unknown
Retail sales fell 0.3% in October after increasing an upwardly revised 1.3% (from 1.1%) in September. The Briefing.com consensus expected retail sales to fall 0.2%. The effects of Hurricane Sandy on the retail sales report are currently unknown. The Census Bureau acknowledged that Sandy reduced business in the Northeast at the end of the month, but they also stated that many sales took place earlier as consumers stockpiled goods before the hurricane wreaked havoc. Until the November data are released, the net effect cannot be determined. Motor vehicle manufacturers, however, already stated that auto sales were softer in October because the hurricane kept shoppers away during the final weekend of the month. That led to a 1.5% decline in sales of motor vehicles and parts dealers. Excluding autos, retail sales were flat in October after increasing an upwardly revised 1.2% (from 1.1%) in September. The consensus expected these sales to increase 0.1%. In a surprise of sorts, sales at building material and supplies dealers fell 1.9% in October. It seems that consumers did not prepare as much for the storm as some reports suggested by buying generators, batteries, and other survival supplies ahead of time. Core retail sales, which strip out the highly volatile auto dealers, building materials and supplies dealers, and gasoline stations, fell 0.1%. That decline is in-line with the soft aggregate earnings gain shown in the employment report that was released two weeks ago and pointed toward weak consumption trends.
