Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

August 26, 2017 | Where Do Consumers Spend the Most Money? (Answer Will Likely Surprise You)

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

In Dealers “Wildly Overweight” SUVs as Sales Slow, I commented “Vehicles account for 20% of retail spending. A crash or even a significant slowdown will impact retail sales and thus GDP.”

A reader asked me how I calculated that. Let’s take a look.

My number came from the latest Census Department Advance Retail Sales Report.

Here are some charts I created from 7-month totals (January-July) 2017.

Retail Sales in Millions of Dollars

Retail Sales Category Percentages

Key Points

  • Motor vehicles and parts account for 21.18% of retail sales. Gasoline stations account for 7.94%. Together that adds up to 29.12%.
  • Food and beverage stores (grocery and liquor stores) account for 12.62 percent of retail sales. Food services and drinking places (restaurants and bars) account for 12.14. The food and drink total is 24.76%.
  • Nonstore retailers (think Amazon) account 10.39% of retail sales.

Related Articles

  1. What’s Hot and What’s Not: Retail Trade Employment vs Food Services and Drinking Places
  2. Deep Subprime Auto Loan Delinquencies Reach 2007 Levels: The Next Big Short?
  3. Serious Credit Card Delinquencies Rise for the Third Straight Quarter: Trend Not Seen Since 2009
  4. More Headline Amusement: Consumer Sentiment Surges

Mike “Mish” Shedlock

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

August 26th, 2017

Posted In: Mish Talk

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.