Retail Sales Remain Well Ahead of Last Year

CALABASAS, CA-Consumers’ contribution to economic growth shows signs of slowing as retail sales dipped for the third consecutive month. So says a recent research report from Marcus & Millichap. According to the firm’s Hessam Nadji, managing director of research and advisory services, this is a surprising trend that hasn’t occurred in nearly four years.

“Core retail sales remain at healthy levels, 8% higher than their pre-recession peak, but the pattern of monthly declines implies a growing hesitancy on the part of consumers and correspondingly lower confidence,” says Nadji. “Consumer confidence fell three points in July, on the heels of a 6.5 point plunge in June, to the lowest level recorded this year.” In addition, he says, “the cooling labor market and slower wage gains reflect a corporate bias toward caution in response to lower growth expectations and uncertainty.”