Retail Sales Rise in April, CNBC/National Retail Federation Reports

By Staff
Tuesday, May 14, 2024 1:43 PM A new report from the CNBC/National Retail Federation shows retail sales grew slightly in April. An early Easter, however, led to an overall year-over-year decline.

According to the National Retail Federation (NRF), total retail sales, excluding automobiles and gasoline, were up 0.26 percent in April seasonally adjusted month-over-month, but down 0.6 percent unadjusted year-over-year in April. This contrasts with March retail sales, which rose 0.36 percent month-over-month and 2.72 percent year-over-year.

The NRF reports that the driving force behind the decline was the timing of Easter this year, which fell at the end of March, unlike the previous year when the holiday occurred in mid-April. Total sales, however, were up 1.82 percent year-over-year for the first four months of the year and core sales were up 2.31 percent.

Declines were seen in electronics and appliance store retail sales rose 2.14 percent month-over-month seasonally adjusted but were down 1.55 percent year-over-year unadjusted. 

Furniture and home furnishings stores were also up 1.67 percent month-over-month, seasonally adjusted, but down 3.28 percent year-over-year unadjusted. Grocery and beverage stores were down 1.11 percent month-over-month, seasonally adjusted, and down 4.46 percent year-over-year unadjusted.

Americans Don’t Feel Close to Others in Their Country and Local Community

By Staff
Monday, May 13, 2024 1:14 PM Americans are less likely than people abroad to feel close to others in their country and community, according to a 2023 Pew Research Center survey of 24 nations. This is especially the case among certain groups of Americans, including younger adults, those with lower incomes and less education, those who identify with or lean toward the Democratic Party, and those who are religiously unaffiliated.

Across all 24 countries surveyed, a median of 83 percent of adults said they felt very or somewhat close to other people in their country. A majority of U.S. adults (66 percent) also hold this view, but Americans are the least likely among those in the countries surveyed to do so.

According to the survey results, even fewer Americans feel close to people in their local community—54 percent feel a connection to others near them, compared with a median of 78 percent of adults across all 24 countries. South Korea is the only country with a lower share of adults who feel connected with others in their community (50 percent).

The Organization for Economic Cooperation and Development Predicts a 3.1 Percent Growth in GDP for 2024

By Staff
Friday, May 10, 2024 4:01 PM The global economy saw steady growth in early 2024, according to a new report from the Organization for Economic Cooperation and Development (OECD). The report projected a 3.1 percent growth in gross domestic product (GDP) in 2024, on par with 2023 figures. The OECD forecasts additional growth in 2025 of 3.2 percent as global economic pressures subside. 

According to a statement from the OECD, recent fluctuations in the housing and credit markets have put significant pressure on GDP growth, however, the organization, which works collaboratively to develop policy standards to promote sustainable economic growth among member countries, said the decline in inflation and improvements in private sector confidence will continue to have a positive effect on global economies. 

In February, the OECD member unemployment rate stood at 4.9 percent, close to its lowest level since 2001. OECD members include 38 countries from across the globe including the United States, Austria, Australia, Belgium, Canada, Chile, Colombia, Costa Rica and Israel.

Several factors will continue to challenge positive growth as the globe continues to emerge from the effects of the pandemic and recent global conflict and supply chain issues. The OECD reports that inflation will stay higher for longer if interest rates do not improve at a steady pace. Growth is also expected to be stagnant in China, where persistent weakness in property markets and smaller-than-anticipated fiscal supports continue to slow economic improvement. 

During times of slow growth, the OECD noted governments face rising fiscal challenges given high debt levels and sizable additional spending pressures from population aging, climate adaptation and mitigation. The organization suggests that future debt burdens are likely to rise significantly if no action is taken, adding there remains a need for stronger near-term efforts to contain spending growth, improve public spending efficiency, reallocate spending to areas that better support opportunities and growth, and optimize tax revenues.

Falling GDP Signals Economic Slowdown, Says National Retail Federation Report

By Staff
Thursday, May 9, 2024 3:13 PM Inflationary pressures and deceleration may have triggered an economic slowdown, according to a new report from the National Retail Federation (NRF). The NRF’s latest Monthly Economic Review, shows gross domestic product (GDP) only rose 1.6 percent in the first quarter, by less than half in the second quarter at 3.4 percent and 2.1 percent by the fourth quarter. This is the lowest level of growth since 2.1 percent in the second quarter of last year, according to the NRF. 

Consumer spending fell in the fourth quarter to 2.5 percent, from 3.3 percent, but grew 2.5 percent year-over-year in the first quarter, with total sales rising 4 percent in March, compared with February 2023. 

New data points to continued economic growth within the labor market, with payrolls growing by 175,000 jobs in April, however, unemployment rose to nearly 4 percent, compared with 3.8 percent in March.

Food Prices Will Continue to Rise, USDA Economic Research Service Report Says

By Staff
Wednesday, May 8, 2024 1:27 PM Food prices continue to soar, according to a new report from the United States Department of Agriculture Economic Research Service (USDA ERS). New data shows that the Consumer Price Index (CPI) for Food, not seasonally adjusted, rose by 0.6 percent between February 2024 and March 2024. This was an increase of 3.5 percent from March 2023. 

Overall, the CPI for food rose 0.1 percent during the same time frame, while food prices rose 2.2 percent over March 2023. 

The CPI for grocery store and supermarket food purchases remained the same from February 2024 to March 2024, however, inflation was 1.2 percent higher than in March 2023. The restaurant purchase CPI was 0.3 percent higher in March 2024 and more than 4 percent higher compared with March 2023. 

The USDA ERS believes food prices will continue to decelerate into 2024, however, an increase of more than 2 percent overall is still expected. Grocery store prices are also predicted to rise by 1.2 percent, while restaurant prices are expected to rise by more than 4.3 percent. 

The USDA ERS expected 2024 prices to increase due to greater volatility in farm- and wholesale-level prices, leading to wider prediction intervals for these products compared to retail-level products.

The Retail Industry Supports 55 Million Full and Part-Time Jobs, NRF Report Says

By Staff
Tuesday, May 7, 2024 3:20 PM The retail industry continues to make significant contributions to the American economy in the form of full and part-time jobs. A new report from the National Retail Federation (NRF) and PwC reviews the economic contribution of the U.S. retail industry, examining direct, induced contributions. 

The report finds that as of 2022, there were more than 55 million full and part-time jobs in the retail industry, accounting for 26 percent of employment in the U.S. both directly and indirectly. Broken down, the industry supports 32.2 million direct jobs in the U.S. retail industry, while the industry’s operations and capital investment support 22.8 million indirect and induced jobs across many sectors of the U.S. economy.

Total labor income contribution reached approximately $3 trillion, or 20 percent of national labor income. Overall, the industry contributed more than $5.3 trillion to the nation’s total GDP, more than 20 percent in 2022, according to the report. 

The NRF stated that there remains positive movement within the retail industry post-pandemic. Auxiliary factors such as the retirement of Baby Boomers and the increased impact of Millennials will continue to cause consumer behavior to shift, affecting profitability and employment within the retail sector. 

In recent years, a significant decline was seen in the retail sector, both in employment and output, as businesses adjusted to contactless shopping and curbside pickup. The report noted that automation, e-commerce growth and industry consolidation will define how the industry evolves in the future.

More People Are Diagnosed With Skin Cancer Than All Other Cancers Combined, Skin Cancer Foundation Reports

By Staff
Monday, May 6, 2024 11:37 AM One in five Americans will develop skin cancer by the age of 70, according to a new report from the Skin Cancer Foundation (SCF). May is Skin Cancer Awareness Month and the SCF is spreading the word on prevention and treatment of the disease.

More people are diagnosed with skin cancer in the U.S. than all other cancers combined, and skin cancer is also one of the most preventable forms of cancer, according to the SCF.

Exposure to ultraviolet light is the main contributing factor in 90 percent of non-melanoma skin cancer cases and 86 percent of melanoma cases. Understanding the risk factors, the SCF said, is one of the best ways to reduce the chances of developing skin cancer.

The SCF recommends covering up when outside. Densely woven and bright, dark-colored fabrics offer the best protection. Cover up with clothing, including a broad-brimmed hat and UV-blocking sunglasses. Clothing can be your most effective form of sun protection, so make the most of it by wearing densely woven materials.

It is also recommended to use a broad-spectrum sunscreen with a minimum of SPF 15 or SPF 30 for extended periods outdoors.

The SCF suggests examining the skin from head to toe for signs of cancer at least once per month. This should be followed by an annual skin exam by a physician at least once per year.

More info about mobile skin cancer exam screenings and education programs can be found at DestinationHealthySkin.org.

A Quarter of Employees With Low Positivity Rates Are Concerned About AI Threatening Their Job Security, Survey Says

By Staff
Friday, May 3, 2024 3:46 PM An employee's resilience and problem-solving skills may keep them ahead of the implications of generative AI technology in the workplace. The new Workforce Well-Being study from meQuilibrium found a quarter of employees with low positivity rates are concerned about the impact of AI threatening their job security. Meanwhile, just 16 percent of workers who consider themselves highly positive felt the same threat. 

The study found that strong problem-solving skills make employees 66 percent more likely to experience positive productivity gains from the use of generative AI and half are as likely to be concerned about job security. More than 68 percent of employers, however, report feeling safe from generative AI job replacement, compared to 18 percent of employees overall.  

The study found that 31 percent of companies have implemented guidance on the use of Gen AI, however, just 9.3 percent of employees reported they are getting enough practical support to use these technologies. 

Gaps were also found within employment fields, with 5.1 percent of health services employees reporting they have been provided with day-to-day AI guidance tools, compared with more than 56 percent of technology employees.

U.S. Auto Sales May Fall in April But Will Remain on Pace for 2024, Cox Automotive Report Predicts

By Staff
Thursday, May 2, 2024 2:18 PM U.S. automotive sales are predicted to slide slightly in April, however, the overall market remains positive. As the month closes out, new sales forecasts from Cox Automotive predicts a drop in April new-vehicle sales compared to last year. Despite this new data, the automotive services and technology provider predicts the market will remain in recovery mode with new vehicles selling at a healthy pace.

Experts with Cox Automotive predict 2024 will still beat pre-pandemic new vehicle sales with sales volume expected to fall slightly by 2.2 percent as compared with April 2023. Seasonally adjusted figures put the overall new vehicle selling pace at 15.9 million for the year, up 0.2 million over last year's pace and 0.4 million from March, when auto sales for the year reached 15.5 million.

April is a shorter month, and this can have an impact on overall new vehicle sales, Cox Automotive said. The company said that despite lower figures, there will be an increase in the overall sales pace which is predicted to continue into 2024.

April’s final new vehicle sales volume is predicted to fall to 1.34 million units, a 2.2 percent decrease from one year ago and a 6.8 percent decrease from March.

Increased vehicle incentives have also got car buyers looking to make a purchase. In April, vehicle supply was up 46 percent compared to last year. Paired with other aggressive dealer incentives, sales will continue to push upward as the year progresses, according to Cox Automotive.

A Median Income of $120,000 Is Needed to Afford a Home, Clever Real Estate Reports

By Staff
Wednesday, May 1, 2024 4:00 PM Fewer Americans are finding their way onto the real estate ladder. A new report from Clever Real Estate finds that the median home price in the U.S. is now $322,494, requiring homeowners to make an annual income of at least $119,769 to afford a 10 percent down payment.  

The price of a home now exceeds the average household earnings of potential homeowners by more than $45,000. Currently, the average annual household income for Americans is $74,755 and Americans would need to earn at least $98,000 to afford a 20 percent down payment, according to the survey. 

The last time a median buyer could put down 20 percent was 1989, 5 percent higher than the current median buyer who can afford around 15 percent. 

Only four states fell within the affordability of meridian earners including West Virginia, Ohio, Iowa and Indiana. Out of the 50 largest metro areas in the country, only Pittsburgh, Cleveland, St. Louis, Memphis, Indianapolis and Birmingham fall within the affordability range for median earners. 

Los Angeles was named the least affordable city in the country—home buyers would need to earn nearly $250,000 a year to afford a median-priced home, three times the current $87,743 median income for the city. 

According to the National Association of Realtors, overall homeownership has dwindled significantly over the past 40 years, falling from 38 percent in 1981 to 32 percent in 2022.

Public School Spending Per Student Is Rising, U.S. Census Bureau Reports

By Staff
Tuesday, April 30, 2024 2:29 PM Public school spending per student rose in 2022, according to a new report from the U.S. Census Bureau. On a national basis, per student spending increased 8.9 percent from $14,358 in fiscal year 2021 to $15,633 in fiscal year 2022. The report, titled the Bureau’s 2022 Annual Survey of School System Finances, details the largest increase in public school spending per pupil in the United States in more than 20 years, the report said. 

New York and the District of Columbia topped the list for most money spent per pupil at $29,873 and $27,425, respectively. The New York City School District had the highest spending per pupil among the 100 largest school systems at $35,914, followed by Washington Schools in the District of Columbia at $27,425. Utah and Idaho had the lowest spending per pupil at $9,552 and $9,670 respectively. 

Despite rising debts, school revenue from all sources in both elementary and secondary education rose by more than 8 percent, reaching $878 billion, with 13 percent coming from federal government contributions and 42 percent coming from local sources. 

Just over $362 billion was received from property taxes, accounting for 65 percent of revenue from local sources, and $383 billion was contributed by state governments. 

Total expenditures also grew in 2022, up 7.8 percent, reaching $857 billion in fiscal year 2022. The largest expenditure for public and secondary schools were salaries at $266 billion, equaling 31 percent of total expenditures.

Department of Labor Releases Final Overtime Rule

By Staff
Monday, April 29, 2024 3:07 PM The National Retail Federation has issued a statement following the release of the Department of Labor's (DOL) final overtime rule. Under the new provisions contained in the Fair Labor Standards Act (FLSA), unless exempt, employees covered by the Act must receive overtime pay for working more than 40 in a work week at a rate not less than time and one-half their regular rates of pay. 

Under the new provisions, there is no limit contained in the Act about the number of hours employees aged 16 and older may work in any work week. According to the FLSA, there is no requirement for overtime pay for work on Saturdays, Sundays, holidays or regular days of rest, unless overtime is worked on such days.

Under the provisions of the act, an employee's work week is a fixed and regularly recurring period of 168 hours or seven consecutive 24-hour periods. The act applies on a work week basis and does not need to coincide with the calendar week. Work weeks may be established for differing groups of employees or individual employees. Averaging hours over two or more weeks is not permitted. Additionally, overtime pay earned in a particular work week must be paid on the regular pay day for the pay period in which the wages were earned.

Mother’s Day Spending Is Trending Downward in 2024, NRF Reports

By Staff
Friday, April 26, 2024 3:16 PM Mother’s Day is just two weeks away and across America consumers are searching for the perfect gift to show their appreciation for all the hard work mothers do. Last week, the National Retail Federation and Prospects Insights and Analytics released their annual consumer survey revealing that more than 84 percent of U.S. adults are expected to celebrate this year and consumers are expected to spend more than $33.5 billion this Mother’s Day, just shy of $35.7 billion spent in 2023.

Mother’s Day is one of the most lucrative holidays in the U.S. with an average of $254.04 spent on Mother’s Day gifts and celebrations, per person. This figure is slightly behind last year’s record of $274.02 per person. Millennials are the biggest spenders on Mother's Day gifts, particularly between the ages of 35 and 45, with an average budget of $345.75. 

Most gifts this year will be purchases for mothers or stepmothers at 59 percent, with wives and daughters coming in second and third at 22 percent and 12 percent, respectively. The most popular gift for Mother’s Day remains flowers and cards at 74 percent each, followed by special outings and brunches at 59 percent. Jewelry continues to gain traction as a popular Mother’s Day gift, with sales expected to reach nearly $7 billion. It has quickly surpassed flowers and greeting cards as the top gift choice. 

Most consumers are looking online for the perfect gift, with 35 percent reporting they will be using e-commerce solutions; 32 percent will stick to department stores and 29 percent will do their shopping at specialty stores.

Coffee Consumption Continues to Surge Globally

By Staff
Thursday, April 25, 2024 4:25 PM Coffee consumption continues to surge globally as consumers move away from soda and alcohol. A new report from consumer behavior advisor Circana, finds that coffee consumption has skyrocketed in several major markets. 

The research, based on analysis from Circana’s Crest Commercial Foodservice data, finds that total coffee servings are expected to grow by 5 percent year over year globally, exceeding the current pace of 3 percent in the U.S. 

Similar growth was seen in 11 out of 12 countries tracked in the data, with China leading all other participants with the highest coffee consumption growth rate. South Korea was the only country not to experience any growth.

According to the Circana report, more than $36 billion was spent on coffee servings last year with several patterns emerging among coffee consumers. Hot coffee remains the most popular choice for coffee drinkers, however, cold coffee continues to make gains, particularly in China where cold coffee consumption grew at a 20 percent compound annual growth rate between 2019 and 2023 and made up 33 percent of total coffee consumption. 

Coffee also outpaced tea and carbonated soft drinks at a rate of 4 percent and 3 percent, respectively year over year.

Trends Show That 1 in 5 Vehicles Sold Worldwide This Year Will Be Electric, the International Energy Agency Reports

By Staff
Wednesday, April 24, 2024 1:16 PM The electric vehicle market (EV) continues to grow globally, despite political and economic pressures. The latest edition of the International Energy Agency’s (IEA) annual Global EV Outlook highlights significant growth, in the U.S. market as well as across China and the European Union. 

New data finds that nearly 1 in 3 vehicles on the road in China will be electric by 2030. Meanwhile, in the U.S. and European Union, this number is 1 in 5. This is in line with current vehicle sales trends, which show that 1 in 5 cars sold worldwide will be electric this year. The IEA believes the continued surge in demand will trigger changes throughout the global auto industry, resulting in a reduction in oil consumption for transport. 

Despite economic pressures, global electric car sales are expected to remain strong in 2024, hitting more than 17 million by the end of the year. The first quarter of 2024 has already shown strong sales of EVs, growing by 25 percent compared with 2023. The report noted the number of electric cars sold globally in the first 3 months of 2023 is on par with total sales for 2020. 

According to the report, the future success of electric vehicle sales will depend greatly on supply chain and policy improvements. The report said that electric vehicle sales could reach 2 in 3 cars by 2035 based on country energy and climate pledges being met on time and in full. This would also reduce reliance on traditional vehicles, while driving the price of electric vehicles down. In 2023, 60 percent of electric vehicles sold in China were less expensive than their conventional counterparts, the report said. 

As a result, the share of EVs on the roads is expected to continue to climb rapidly totaling approximately 45 percent of all car sales. The change would also result in a decreased reliance on oil by around 12 million barrels per day. 

Offering more charging points will also significantly increase the sale of electric vehicles. Already, the number of charging points globally has climbed by more than 40 percent between 2023 and 2022.