Release Date: September 23, 2005
Phone: 954-893-7300
Fax: 954-893-7500
E-mail: nasfm@nasfm.org

link to previous articles

SEPTEMBER 2005

The first signs are appearing that high gasoline prices and slowing personal income is having an effect. The Commerce Department reported that consumers spent $59 billion more at an annual rate than they earned with personal income rising 0.3% at latest count, but consumer spending jumping 1%. Consumers are also expected to spend less. The National Retail Federation predicted November and December retail sales will rise 5%, the smallest growth rate since 2002. The Commerce report also indicated consumers cut into their savings with a negative savings rate of 0.6%. Businesses are also feeling the pinch, as the Labor Department said unit labor costs are rising at the fastest rate in five years. Unit labor costs grew 4.2% during the 12 months ending June 30. New home construction also declined 1.3% in August, the second consecutive monthly drop.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in August at 192.9 (1982 equals 100), down from 197.3 the previous month and down from 219 for the same month a year ago. Hardwood lumber was at an index of 195.1, up slightly from 194.6 the preceding month but down from 201.5 the same month a year ago. Millwork prices were at an index of 196.9, down slightly from 197.2 a month earlier but up from 194.9 a year earlier.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in August was $13.47 an hour, up slightly from $13.44 the previous month and up from $13.28 an hour a year ago. The average work week of non-supervisory workers was 39.6 hours, up from 39.1 the previous month but down slightly from 39.9 hours a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $6.28 billion value of retail and non-office commercial construction in July, up from a revised $6.15 billion for the previous month, and up from $5.38 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in August totaled $274.92 billion, up from a revised $272.23 billion for the previous month and up from $251.19 billion for the same month a year ago. Unadjusted retail sales were $280.92 billion, up from $270.15 billion for the previous month, and up from $253.82 billion a year ago. Seasonally adjusted department store sales totaled $17.74 billion, down slightly from $17.79 billion the previous month and down from $17.86 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $16.65 billion, even with $16.64 the previous month but up from $15.68 billion for the same month a year ago.