The retail sales sector tracked by the Index has increased by approximately 50 percent in the last four years. Nationally, the retail sales sector was sluggish in June. High gas prices, up an average of 70 cents from a year ago, are one factor contributing to the low sales. Cool weather throughout the country in June is also thought to have dampened consumer's desire to spend money on summer clothes. As discussed in last month's report, trends in retail sales are reflected in consumer confidence reports.
Consumer spending makes up two-thirds of the economic activity in the nation.
As consumer confidence declines, so do retail sales and overall economic activity. The Consumer Confidence Index, produced by the Conference Board, declined over six points in June. While some economists feel it is too early to predict whether consumers will reduce spending over the long run, many feel this report is a first step. Recent reports of slow downs in home sales, factory orders and unemployment levels reinforce this conclusion. The Home Sales sector of this month's Index decreased 19.01 percent over the previous month's all-time high.