Automobile shortages, spending shift to services hurt U.S. retail sales

[mahatmakanejeeves]

Source: Reuters, via Yahoo! Finance

Automobile shortages, spending shift to services hurt U.S. retail sales

Lucia Mutikani
Tue, August 17, 2021, 8:38 AM · 4 min read

WASHINGTON (Reuters) - U.S. retail sales fell more than expected in July as shortages depressed motor vehicle purchases and the boost to spending from the economy's reopening and stimulus checks faded, suggesting a slowdown in economic growth early in the third quarter.

The weak sales reported by the Commerce Department on Tuesday also reflected a rotation in spending back to services from goods. Retail sales mostly capture the goods component of consumer spending, which accounts for a smaller share, with bulky services such as healthcare travel and hotel accommodation making up the rest.

The school year gets into full swing later in August and most education districts are reverting to in-person learning. As such, consumer spending is likely to remain strong and keep the economy growing, though rising COVID-19 cases and a recent plunge in consumer sentiment are wild cards.

{snip}

Retail sales dropped 1.1% last month. Data for June was revised up to show retail sales increasing 0.7% instead of rising 0.6% as previously reported. Retail sales are 17.2% above their pre-pandemic level.

Economists polled by Reuters had forecast retail sales slipping 0.3%. Sales increased 15.8% compared to July last year.

Receipts at auto dealerships fell 3.9% after declining 2.2% in June. Motor vehicle production has been hampered by a global shortage of semiconductors.

{snip}

Read more: https://finance.yahoo.com/news/u-retail-sales-drop-july-123809800.html

---

There's a shortage, but production is accelerating.

Give me some time to figure that out.

-- -- -- -- -- --

They rewrote the article. Here's the original post:

Automobile shortages weigh on U.S. retail sales

Tue, August 17, 2021, 8:38 AM
By Lucia Mutikani

WASHINGTON (Reuters) - U.S. retail sales fell more than expected in July as shortages weighed on purchases of motor vehicles, suggesting a moderation in economic growth early in the third quarter.

The weak sales reported by the Commerce Department on Tuesday also reflected a plunge in online purchases, payback after Amazon pulled forward its Prime Day to June from July.

{snip}

[ananda]

1. When I ordered mine, there was a chip shortage.

That was back in mid June.

I pick it up next week.

[Bernardo de La Paz]

2. Shortage of vehicles hit sales. Production is up but hasn't caught up to demand. . . . nt

[twodogsbarking]

3. There are shortages of many things,

including reporting on shortages of things.

[Wicked Blue]

4. There are dozens of cargo ships stuck near the seaports in California

unable to dock and unload. I saw that as a small item on the Washington Post business page this morning, but am unable to find a link

[mahatmakanejeeves]

5. Sometimes they get those little AP items, and it's hard to link to them.

This looks like it:

California congestion nears new high, East Coast gridlock worsens

Port congestion on both coasts is likely to cap second-half US import capacity

Greg Miller, Senior Editor | https://twitter.com/GMJournalist | Monday, August 16, 2021

It’s only mid-August — the early days of peak shipping season — but the record for container ships anchored off California is already on the verge of being broken.

Port congestion is simultaneously building along the East Coast, with anchorage numbers off Georgia well into the double digits and, for the first time this year, a growing queue offshore of the Port of New York and New Jersey.

Southern California congestion soars

California congestion previously peaked in the first quarter. On Feb. 1, the Marine Exchange of Southern California reported an all-time-high 40 container ships at anchor in San Pedro Bay, awaiting berths in Los Angeles or Long Beach. The highest number of container ships in the entire port complex, including those at anchor and at berth — 67 — was set on Jan. 28.

On Friday, there were 125 ships of all types (including tankers and cruise ships) either at berth or anchor in Los Angeles/Long Beach. That’s a new record. The Q1 high was 113.

On Saturday, there were 68 ships of all types at anchor, yet another record. There were 66 container ships either at berth or waiting offshore, just one short of the all-time high. And there were 37 container ships waiting offshore, three short of the February peak.

All regular and emergency anchorages were full, forcing the overflow to drift in designated areas. As of Sunday, five container ships were drifting off Santa Catalina Island.

{snip}

The retail sales story at the WaPo:

Retail sales slide 1.1 percent in July as Americans rein in spending on growing delta worries

Sales of cars and auto parts — which were hurt by a shortage of computer chips — fell 3.9 percent, while online spending tumbled 3.1 percent. Consumers also cut back on clothing, furniture and groceries.

By Abha Bhattarai and Aaron Gregg

[Initech]

6. I am lucky I got my car when the time was right.

I got my car last September and could honestly not have got a better deal on it. Now my car was a bit of a problem child (mainly dealer related) but I think I have all of that sorted out now. But I'm glad I got when the time was right.

Of course now my registration is due and...

I also upgraded my desktop and bought a new laptop since I wasn't going anywhere or spending money on anything else.

This year I'm saving more for when I actually do go out and have fun,