Economy Watch: Sales, Mortgage, And Gas

ICSC Retail Sales Data
The International Council of Shopping Centers and Goldman Sachs reported its chain-store sales index for the week ending on July 23, 2011 rose 2.8% to $94.626 billion from the week before of $92.023 billion, and was up a strong 4.3% from the same period last year. Rretailers were continuing to mark-down summer merchandise, some retailers started their promotions for Back-to-School to drive early sales of these offerings. Although, consumer sentiment is not high due to the continued debt ceiling impasse in Washington, consumers are still purchasing at higher rates than a year ago. Barring a national debt default scenario, analysts expect that retail sales will continue to grow through the next several weeks as consumers enter August and the 'Back-to-School' shopping period.

Shoppertrak Retail Sales Data
For the week ended July 9, 2011, ShopperTrak's National Retail Sales Estimate was $89.149 billion, down 1.9% from last week's $90.887 billion, but up 1.2% from the same week last year. Historically, July 4th is the poorest holiday for general merchandise, apparel, furniture, and other store retail sales and 2011 proved no exception. Sales will bump along the next few weeks until 'back to school' kicks into gear. Note that efforts by several retailers to jump start the season with pre-'back to school' sales flopped.

Mortgage Rates Decrease
Bankrate.com reported that the average conforming 30-year fixed mortgage rate fell to 4.68%, down from last week's 4.69%, according to its weekly national survey ending July 20, 2011. It also reported that the average 15-year fixed mortgage rate was 3.82%, unchanged from last week.

Gas Prices Up
The Energy Department announced that for week ending July 25, 2011, the average price of US gasoline rose to $3.699 a gallon, up a tad from $3.682 per gallon week earlier. This is the third weeks of rising prices.

Diesel prices rose to $3.92, up from $3.90 last week and the second week of rising prices.