The drop included sales of electronics, clothing and grocery store purchases. Clothing sales dropped 0.9 percent, because, according to the National Oceanic and Atmospheric Administration (NOAA), this was the warmest Dec. on record for the contiguous states. The Commerce Department’s report said electronics store sales fell 0.2 percent.
Despite the increase in the jobs market, wages have increased tepidly, leading some economists to believe consumers are leery about the economy, and are saving what they have been putting in their gas tanks. Add to that an uncertainty about who might be the next president, and the ensuing direction of the new administration.
The Labor Department said inflation did not rise at the wholesale level, the producer price index fell 0.2 percent in Dec. from Nov. and one percent from a year ago. Gasoline station revenues fell 1.1 percent in Dec., as the average price of a gallon fell to a seven-year low, below $2. Although auto sales in Dec. registered a 17.2 percent annualized rate, the worst since July, sales on the year came in at a record high of 17.5 million.
Gross domestic product (GDP) dropped 0.3 percent in Dec., the largest decline since Feb., following Nov.’s increase of 0.5 percent.
Same store sales for Nov.-Dec. dropped for Macy’s and Best Buy, but rose for J. C. Penney Co.
Meanwhile, WalMart is closing 269 stores of its 11,000 locations across the globe, 154 of them here in the U. S., and all the Wal-Mart Express stores, which are like a convenience store. Ninety-five percent of those being closed are within ten miles of another Wal-Mart. There are over 5,000 Wal-Marts in the nation.
Representing less than one percent of its global revenue, the closings will begin at the end of the month and will affect 16,000 workers, 10,000 of them in the U. S. Globally, the world’s largest retailer employs 2.2 million, 1.4 million in the U. S.
The company said last Oct. that earnings for the next month may be down 12 percent as it invests in online sales, in competition with Amazon, and improves customers experiences in the stores. The company expects earnings to take a $0.20 to $0.22 hit per share from continuing operations, and $0.19 to $0.20 for Q4, which ends Jan.31, 2016.
No less a figure than Equities LifeStyle Properties Chairman Sam Zell said in an interview on MHProNews that as tragic as a poor economy can be, it is a possible boost for manufactured housing – if the MH industry is pro-active and responds in the right ways. For the interview, click here.
MHProNews and MHLivingNews publisher L. A. “Tony” Kovach weighs in on 17.5 million autos sold in 2015 versus 70,000 manufactured homes. Do click here. ##
Graphic credit: bloomberg/U. S. Commerce Dept.)
