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Weekly Market Insight
Retail Sales
 June 18, 2012

Source: Newmark Grubb Knight Frank, Census Bureau 		Retail sales softened appreciably in the past few months in tandem with sluggish job creation and earnings growth. Total retail sales, seasonally adjusted, declined by 0.2 percent in both April and May, pulling down year-over-year sales growth to 5.3 percent in May. It was the weakest 12-month gain since August 2010. Declining prices at the gas pump in the past two months failed to trigger a commensurate rise in other categories. Core sales, which exclude vehicles and gasoline, are softening as well. Part of the weakness could be weather-related; sales at building material stores softened in April and May suggesting that some construction and home improvement projects were started early, pulling those sales forward. Besides disappointing job and earnings growth, consumers are wary of continued weakness in housing prices and the erratic stock market, both of which played a role in the sharp decline of household net worth in recent years. With consumer spending accounting for 70 percent of gross domestic product, the economy is likely to remain just above stall speed until after the elections. Expect continued, slow improvement in shopping center leasing market fundamentals.

Need more information? Contact:

Robert Bach
National Director, Market Analytics
312.698.6754