Recent economic data "continue to suggest that the only substantial declines in real activity in the US economy are in manufacturing," the National Bureau of Economic Research said in a report posted this week on its Internet site.
At the same time, the Cambridge, Massachusetts-based group dropped a previous reference that data suggested the "possibility" a recession began recently. "Broader aggregates, such as employment and real personal income, haven't fallen significantly or at all," said the organization, which has a committee whose members decide when US recessions and expansions begin and end.
In June, sales of new and used vehicles rose 1.5 percent after increasing 0.2 percent in May, Commerce said. Automakers reported selling more Toyota Motor Corp sport-utility vehicles and DaimlerChrysler AG vehicles last month, pushing unit sales to an annual rate of 17 million, the highest since March.
Sales at electronics and appliance stores rose 1.1 percent in June after showing no change in May. Sales of building materials, hardware, garden supplies and other goods were unchanged in June.
Sales at clothing and accessory stores fell 1 percent after a 1.3 percent decrease. AnnTaylor Stores Corp, which sells women's clothing, Gap Inc, the largest US clothing retailer, and Limited Inc, the No. 2 clothing retailer, reported that sales declined in June as shoppers flocked to low-priced chains.
Furniture, home furnishings and equipment sales fell 0.1 percent after a 0.8 percent increase in May. Sales at gasoline service stations fell 1.8 percent in June after a 3 percent surge in May, reflecting lower gasoline prices. The average price of gasoline at the pump dropped as low as US$1.58 a gallon in June, down from as much as US$1.75 a gallon in May.
Lower gasoline prices gave consumers more money to spend on other goods. Sales at restaurants and bars rose 0.9 percent in June after rising 1 percent. 7-Eleven Inc, the biggest convenience-store chain, reported that sales at stores open at least a year rose 6.6 percent in June as customers bought prepaid phone cards and frozen Slurpee drinks with money saved on gasoline.
"We are very confident the second half of the year will be stronger than the first half," said 7-Eleven Chief Executive James Keyes in an interview Wednesday with Bloomberg Television.
Energy prices fell 2.5 percent in June after a 0.2 percent May increase, the Labor Department's report showed. Residential electricity prices fell 1.5 percent last month following a 0.7 percent increase in May. The June decrease was greater than the previous record drop of 1.3 percent in September 1995. Residential natural gas prices plunged 5.8 percent in June.
Prices for computers decreased 2.8 percent during June, following a 1 percent fall the prior month. Sales at Compaq Computer Corp have dropped as rival Dell Computer Corp cut prices on everything from PCs to servers used to run networks.
RSS