Retail sales flat in July as inflation takes toll
The pace of sales at U.S. retailers was unchanged last month as persistently high inflation and rising interest rates forced many Americans to spend more cautiously.
Retail purchases were flat after having risen 0.8% in June, the Commerce Department reported Wednesday. Economists had expected a slight increase.
Still, Wednesday’s report contained some positive signs: Excluding autos and auto parts, retail sales rose 0.4% in July.
Lower gas prices likely freed up money for people to spend elsewhere. Gasoline sales slid 1.8%, reflecting the drop in pump prices.
“As gas prices fell, consumers had more money in their pockets for other items such as furniture and electronics,” said Jeffrey Roach, chief economist at LPL Financial.
Sales of building supplies and garden equipment held up, as did sales at electronics and appliance stores.
At the same time, consumers remained wary of spending much on nonessentials: Sales were down 0.5% at department stores and 0.6% at clothing stores.
Compared with 12 months ago, overall retail sales rose 10.3% in July.
U.S. jobless claims dip for first time in 3 weeks
Applications for U.S. unemployment insurance fell for the first time in three weeks, suggesting demand for labor remains healthy.
Initial unemployment claims decreased by 2,000 to 250,000 in the week ending Aug. 13, Labor Department data showed Thursday. The data is particularly scrutinized because it corresponds with the reference period for the government’s August employment report, which will be released early next month.
The median estimate in a Bloomberg survey of economists called for 264,000 applications.
Continuing claims for state benefits climbed to 1.44 million in the week ending Aug. 6, the highest since early April.
The drop in jobless claims points to still-healthy labor demand as companies try to attract and retain employees amid lingering worker shortages. However, several employers have been laying off staff or freezing hiring amid economic uncertainty, which could continue as the Federal Reserve pursues an aggressive path of interest-rate hikes.
The four-week moving average, which smooths swings in the sometimes-choppy jobless claims data, fell slightly to 246,750. That’s the first drop since early April.
On an unadjusted basis, initial claims decreased to 191,834 last week.
California and Ohio fell the most, and claims in Massachusetts, which have been volatile in recent weeks, posted a large increase.
Topless dancers in California seek to unionize, a U.S. first
Dancers at a topless bar in North Hollywood filed a petition Wednesday for a union recognition election, in a move union officials said could make them the only strippers in the United States represented by a union.
If the National Labor Relations Board grants the petition and dancers at the Star Garden Topless Dive Bar vote to unionize, their bargaining unit would be affiliated with Actors’ Equity Association, the national labor union representing more than 51,000 professional actors and stage managers employed in live theater.
“Strippers are live entertainers, and while some aspects of their job are unique, they have much in common with other Equity members who dance for a living,” Actors’ Equity Association President Kate Shindle said.
“In my conversations with them, these dancers reported consistent compensation issues — including significant wage theft — along with health and safety risks and violations,” she added.
The union is affiliated with the AFLCIO.