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

link to previous articles

SEPTEMBER 2006

The revised GDP for the second quarter showed a 2.9% increase over the previous period. This was up from a preliminary 2.5% gain, but was down significantly from a 5.6% jump in the first quarter of the year. Sales of durable goods in August were down 0.5% from the prior month and industrial production in August was off 1% from the earlier month, following a 0.4% increase in July. Factory utilization in August fell to 82.4%, compared to 80% for the same month a year ago. Construction of new home starts sank 6% in August from the previous month, the fifth decline in the last six months. The inventory of new homes for sale swelled to a record 568,000 in July, as the housing market cooled. Despite some somber economic figures, the index of consumer confidence measured by the Conference Board rebounded in September to a 104.5 level, up from 100.2 in August.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in August at 182.1 (1982 equals 100), down from 188.9 the previous month, and down from 194 for the same month a year ago. Hardwood lumber was at an index of 198.3, up from 197.1 for the preceding month and up from 196.1 for the same month a year ago. Millwork prices were at an index of 202.6, down from 203.1 the preceding month but 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 August was $13.78 an hour, up slightly from a revised $13.75 the previous month, and up from $13.45 an hour a year ago. The average work week of non-supervisor workers was 39.5 hours, up from 38.7 hours the previous month and equal to 39.5 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 $7.13 billion annual rate value of retail and non-office commercial construction in July, down slightly from a revised $7.27 billion for the previous month, but up from $6.36billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in August totaled $291.77 billion, nearly even with a revised $291.21 billion for the previous month and up from $271.50 billion for the same month a year ago. Unadjusted retail sales were $298.33 billion, up from $286.97 billion for the previous month, and up from $276.99 billion a year ago. Seasonally adjusted department store sales totaled $17.54 billion, even with $17.57 billion the previous month, but down from $17.78 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $17.89 billion, down slightly from $17.93 the previous month but up from $16.77 billion for the same month a year ago.