Consumer Spending - June 2010
The recent momentum of consumer spending slowed as May retail sales pulled back.
- According to the U.S. Census Bureau, retail sales fell 1.2 percent from April to May, marking the first decline since September 2009. On a year-over-year basis, total retail sales were up 6.9 percent in May.
- From April to May, core retail sales (total excluding gas, autos, and building supplies) posted a small increase of 0.06 percent. On a year-over-year basis, core retail sales were up 4.5 percent from May 2009.
The decline in May retail sales was largely due to a drop in sales at building materials, equipment, and supply stores.
- The decline in May retail sales was largely due to a drop in sales at building materials, equipment, and supply stores.
Consumer confidence in the Southeast fell in June, most likely a reflection of the reaction to the oil spill.
- According to the Conference Board, overall consumer confidence fell 10 points from May to June to 52.9.
- Consumer confidence in the Southeast divisions dropped in June as well.
Sales tax revenue in the District turned positive on a year-over-year basis for the first time in over 2 years.
- District state departments of revenue reported that sales tax revenue was 0.3 percent higher for the region overall than in May 2009, marking the first positive rate since April 2007.
All states in the District experienced an increase in sales tax in May.
Mississippi gaming tax revenues increased slightly in May.
- The Mississippi State Tax Commission reported that Mississippi's Gulf Coast gaming tax revenues increased from $92.5 million in April to $95.3 million in May.
District-assembled vehicle sales increased 35 percent, ahead of the nation's pace.
- Sales of Hyundai-Kia jumped 100 percent on a year-over-year basis. One-third of the gains came from sales of the new Kia Sorento crossover.
- The outlook for sales is encouraged by strong demand for most vehicles and low inventories.
- District vehicle sales improved from last year's low levels for March and April.
- Nationally, new vehicle registrations were up 12 percent on a year-over-year basis.