Release Date: September 25, 2008
Phone: 954-893-7300
Fax: 954-893-7500
E-mail: are@retailenvironments.org

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September 2008

Major economic indexes tumbled in August in the midst of the nation’s financial crisis and faltering housing market. Durable goods sales plunged 4.5% to $208.5 billion, the largest decline in eight months. Industrial production dropped 1.1%, and the Federal Reserve revised its previous month’s total to a reduced 0.1% gain. The Conference Board reported that the index of leading economic indicators fell 0.8% in August, the third decline in the last four months. New home sales plummeted 11.5% in August to the slowest pace in 17 years. The unemployment rate rose to 6.1%. One of the few higher indexes was worker productivity, which rose 4.3% in the second quarter, although observers said this was partially caused by businesses making do with smaller work forces.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in August at an index of 167.9 (1982 equals 100),up from 166.9 the previous month, but down from 176.8 for the same month a year ago. Hardwood lumber was at an index of 184.0, down slightly from 184.5 for the preceding month and down from 192.2 for the same month a year ago. Millwork prices were at an index of 205.1, down from 205.5 the preceding month, but up from 201.4 for the same period 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 $14.59 an hour, up slightly from a revised $14.49 the previous month, and up from $14.31 an hour a year ago. The average work week of non-supervisor workers was 38.6 hours, up slightly from 38.4 hours the previous month, but down from 40.3 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 $7.64 billion annual rate value of retail and non-office commercial construction in July, down from a revised $7.68 billion the previous month, and down from $7.79 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in August totaled $313.66 billion, down from a revised $315.94 billion for the previous month, but up from $297.24 billion for the same month a year ago. Unadjusted retail sales were $319.49, slightly lower than $319.49 billion for the previous month, but up from $306.47 billion a year ago. Seasonally adjusted department store sales totaled $16.84 billion, down from $17.09 the previous month, and down from $17.58 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $19.09 billion, down slightly from $19.15 the previous month, but up from $18.86 billion for the same month a year ago.