By Christine Kern, contributing writer
Some 23,800 jobs were added to the retail industry in July, according to the latest NRF reports, sustaining a notable positive trend with a three-month average of 25,300 new retail jobs a month.
“Once again, the employment report points to a solid growth and retail continues to make its contribution to pushing the trend upward,” asserted NRF Chief Economist Jack Kleinhenz. “Retail job gains were broad-based and consistent with our expectations of consumer spending and future retail sales.”
“Average hourly earnings showed growth in the right direction, but gains were short of what is needed to see an impact,” Kleinhenz said. “I do not believe this report will reduce the odds of a September increase in the federal funds rate.”
And despite the recent revision of the 2015 economic outlook, the NRF anticipates that spending will increase in the second half of the year. The National Retail Federation has issued a revised retail sales forecast for 2015, lowering its anticipated figures due to unexpected slow growth during the first half of the year. This pattern echoes the industry’s experience in 2014. NRF experts also predict that sales will steadily increase through the remainder of the year. The original NRF forecast in February predicted a 4.1 percent growth in retail sales over 2014, but the new revision lowers the forecast to 3.5 percent.
Kleinholtz explained, “Real consumer demand has actually been stronger than what nominal retail sales have indicated, and deflationary pricing is helping keep receipts low for U.S. households. Going forward, retail sales should register further strength, and resilient consumers should never be counted out.”
NRF President and CEO Matthew Shay asserted, ““Despite all of these hurdles, we are optimistic that consumer spending during the second half of the year will benefit from recent improvements in the housing and labor markets along with lower energy costs, and believe consumer confidence will grow enough to bolster retail purchases for the year.”
Coming Soon: Innovative Retail Technologies
We’re rebranding! In time for the Sept/Oct issue, Integrated Solutions For Retailers will become Innovative Retail Technologies. Renew your subscription or subscribe today.
|
|
|
|
|
|
|
|
|
