Release Date: June 28, 2006
Phone: 954-893-7300
Fax: 954-893-7500
E-mail: nasfm@retailenvironments.org

link to previous articles

JUNE 2006

Some signs appeared that the economy is starting to weaken. The Commerce Department reported that durable good orders in May dipped slightly by 0.3% from the previous month. However, this was a much smaller decline than the 4.7% drop in April. The Federal Reserve reported that factory output in May dipped 0.1% after three consecutive months of gains. The consumer confidence index fell 7 points to 103.2, the first decline since last November. On a positive note, new home sales rose 4.6% in May, but this increase was less than the 6% gain of the same month a year ago. Also tempering the gain was the number of new home building permits fell 2.1% from April and was down 8.5% from a year ago.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in May at 201.7 (1982 equals 100), up from 197.6 the previous month, and up from 195.9 for the same month a year ago. Hardwood lumber was at an index of 196.4, up from 194.7 for the preceding month and up from 195.8 for the same month a year ago. Millwork prices were at an index of 202.0, up slightly from 201.6 the preceding month and up from 196.8 a year earlier.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in May was $13.61 an hour, down from a revised $13.69 the previous month but up from $13.42 an hour a year ago. The average work week of non-supervisor workers was 38.0 hours, the same as the previous month but down from 38.7 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 $6.14 billion value of retail and non-office commercial construction in April, up from a revised $5.76 billion for the previous month, and up from $5.82 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in May totaled $288.76 billion, up slightly from a revised $287.30 billion for the previous month and up from $264.57 billion for the same month a year ago. Unadjusted retail sales were $296.70 billion, up from $280.22 billion for the previous month, and up from $269.46 billion a year ago. Seasonally adjusted department store sales totaled $17.81 billion, even with $17.80 billion the previous month and even with $17.82 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $17.58 billion, even with $17.55 the previous month and up from $16.59 billion for the same month a year ago.