Tuesday, July 15, 2008
The Commerce Department reported lower than expected retail sales for the month of June, an indication that the effects of the rebate checks may have already dissipated.
The advance estimate for June sales rose by just 0.1 percent following a downwardly revised gain of 0.8 percent in May where much of the prior month's gain was attributed to the distribution of almost $50 billion in government stimulus.
Auto sales plunged 3.6 percent last month, now down 10.5 percent on a year-over-year basis while rising prices at the pump led gasoline station sales 4.6 percent higher lin June, now up 24.5 percent from year ago levels, all of this increase due to higher fuel prices amid weakening demand.
Excluding automobile sales, overall sales rose 0.8 percent in June, however, if just gasoline sales are excluded, overall sales dropped.