e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]July was a mixed month in the retail world. Total U.S. retail and food service sales increased by +0.4% last month. Sales had previously fallen by -0.3% in June and by -1.0% in May after increasing for seven straight months. Despite July’s positive total, only six sectors (out of 14) registered higher sales. The biggest increases were reported by: gasoline stations (rising by +2.3% due to higher prices); motor vehicles & parts dealers (+1.6% compared with June); and miscellaneous store retailers (+0.8%). Seven retail categories reported lower sales in July. Recording the biggest losses were: department stores (falling by -1.0%); followed by clothing & clothing accessories stores (-0.7% over the month). Sales of health & personal care stores in July were the same as in June. [All figures in this paragraph are seasonally adjusted.]
Comparing January-July 2010 sales with the same months last year gives a somewhat different perspective. [All figures in this paragraph are actuals, not seasonally adjusted.] Total retail and food service sales were up by +6.4% compared with the first seven months of 2009. The details by store type were very positive, as thirteen store types reported higher sales so far this year while just one type reported lower sales. Sectors that gained the most over the year were led by: gasoline stations (up by +21.1%, due to much lower prices early in 2009); nonstore retailers (rising by +12.4%); and motor vehicle & parts dealers (+9.8%). These were followed at some distance by miscellaneous store retailers (+4.9%); clothing & clothing accessories stores (+4.7%); sporting goods, hobby, book & music stores (also +4.7%); and other general merchandise stores (excluding department stores, +4.4%). Only department stores reported lower sales year to date, and they were down by just -0.5%.
Retail sales paused for breath in May, June and July after a seven-month run-up through April. Economists worried about the near-term outlook won't get much comfort from the July results. On the other hand, their worries shouldn't increase much either, as most changes—up or down—were small. The best summary description of retail sales so far this year runs something like this: "sales are better than last year but still nothing to cheer about." (Nancy D. Sidhu)
Source: http://www.census.gov/retail/marts/www/marts_current.pdf
The total number of containers handled in July at the ports of Los Angeles and Long Beach rose by +30.7 percent on a year-over-year basis to 1,318,627 TEUs (twenty-foot equivalent units). This was the eighth consecutive month of year-to-year increases and fourth consecutive month of TEU totals above one million. The Port of Long Beach experienced the largest gain in trade volumes over the year, as total containers grew by +35.8 percent in July. It was the busiest month for the Port of Long Beach since October 2008 and the second busiest since November 2007. The Port of Los Angeles also witnessed a very strong gain in volumes as total containers were up by +26.8 percent on a year-to-year basis.
The Port of Long Beach reported a robust increase in the total number of inbound loaded containers, to 293,878 TEUs in July 2010 compared with 221,719 TEUs in July 2009, a rise of +32.5 percent. Loaded inbound traffic at the Port of Los Angeles rose by +21.0 percent from July 2009 to July 2010, rising from 305,226 TEUs to 369,389 TEUs (excluding empties).
The Port of Long Beach saw a total of 126,177 loaded outbound TEUs for the month of July, an increase of +16.4 percent from July 2009. The Port of Los Angeles reported a total of 146,369 loaded outbound TEUs (excluding empties) in the month of July, an increase from 138,269 TEUs in July 2009 (+5.9%).
The Port of Oakland also reported a strong climb in its total inbound container traffic as imports (excluding empties) rose by +16.8 percent compared to a year earlier. However, total exports declined by -6.8 percent on a year-to-year basis. Over the year, Oakland’s total TEU count was up by +16.3 percent, to 214,643 TEUs in July. (Ferdinando Guerra)
Source:http://www.portoflosangeles.org/maritime/stats.asp,http://www.polb.com/
http://www.portofoakland.com/
The May numbers from PKF Consulting pointed to continued improvement in the hotel industry. In Los Angeles County, the average occupancy rate was 71.0% compared with 66.7% in May 2009. The average daily room rate (ADR) edged down by -1.5% to $137.35. This yielded a +4.8% increase in revenue per available room (REVPAR). For the month, the highest occupancy rates in the County were found in Santa Monica (82.3%) and in the area near LAX (78.9%). The highest ADR in May was found in Beverly Hills ($332.05), which was down over the year by -4.4%.
In Orange County in May, the average occupancy rate was 69.6% compared with 63.3% last year. The ADR slipped by -0.1% to $130.16 but the REVPAR rose by +9.8% over the year. The highest occupancy rates were found in Costa Mesa (74.1%) and in the vicinity of the John Wayne Airport (72.7%). The highest ADR was found in Huntington Beach at $195.89, which was up over the year by +0.7%.
The average May hotel occupancy in San Diego County was 69.6% compared with 66.6% last year. The ADR declined by -7.6% to $145.21. REVPAR fell by -3.4%. The highest occupancy rate in the County was found in Sports Arena/Old Town at 78.2%. The highest ADR was in San Diego Bay Areas, at $209.38 which was down over the year by -4.5%.
The average hotel occupancy rate in San Francisco in May was 82.5%, up from 74.7% last year. The ADR increased by +3.8% to $158.42. By area in the City, the highest occupancy rate was Fisherman’s Wharf at 89.3%. In San Jose/Peninsula, the May occupancy rate was 70.9% compared with 54.5% last year. The ADR was up by +4.2% to $117.09.
Hotel occupancy rates have been strengthening for quite some time now, but those gains have been largely driven by hotels offering discounted room rates to attract customers. While there is still a lot of distress in the hospitality industry, it is encouraging to see average daily room rates in some areas on the upswing or at least posting slower rates of decline. (Kimberly Ritter)
Source: PKF Consulting
California maintained its position as the second largest exporting state in June (Texas #1, New York #3, Florida #4 and Illinois #5), with total exports valued at $12.2 billion. Merchandise exports in June were up by +22.8% over the year, the eighth consecutive year-to-year increase.
The top five California export markets in June were Mexico, China, Canada, Japan, and South Korea. All of California’s top export markets experienced significant gains. Exports to Mexico, California’s largest market, recorded the fifth highest annual increase, with a climb of +15.2% over the year. California’s fifth largest market, South Korea, witnessed the highest annual increase for the fifth consecutive month, with a surge of +70.9% over the year to June. The state’s second largest market, China, experienced the second largest year-to-year increase, with a +26.2% rise in June. Exports to Japan and Canada strengthened by +22.5% and +17.8%, respectively. From an industry standpoint, the top three product exports (ranked by dollar value) were computers & electronic products, machinery (except electrical) and transportation equipment.
On the import side, California remained the top importing state in June, with total imports valued at $29.9 billion. Texas, New Jersey, New York and Illinois were the other top importers. California imports increased by $3.1 billion from May to June. Imports in June were up by +16.9% year-to-date. (Ferdinando Guerra)
The overall Consumer Price Index for All Urban Consumers (CPI-U) nudged up by +0.3% in July after declining by -0.1% in June. Over the twelve months ending July 2010, headline inflation increased by +1.2%.
The Core U.S. Consumer Price Index (all items less food and energy) edged up by +0.1% in July following June’s increase of +0.2%. Over the past year, core CPI remained at +0.9% for the fourth month in a row. The shelter index was up by +0.1% in July, but was down by -0.7% over the year. The biggest gains over the month were posted for prices of used cars and trucks (+0.8%) and apparel (+0.6%). For the twelve months ending in July 2010, the indexes for used vehicles jumped by +17.0%, while the index for apparel dipped by -0.3%. The index for medical care slipped by -0.1% but increased over the year by +3.2%.
Outside the core CPI components, the energy index rose by +2.6% in July after dropping by -2.9% in June. Over the year, however, energy prices climbed by +5.2%. Gasoline prices were up by +4.6% after declining in each of the previous five months and rose over the year by +7.4%. The food index edged down by -0.1% in July after remaining unchanged in May and June. Compared to the same period last year, the food index rose by +0.9%.
The Los Angeles CMSA (LA-Riverside-OC) Consumer Price Index inched up by +0.1% in July, after falling by -0.2% in June. Over the year, the regional all-items index advanced by +0.9%. [Note: local consumer price index data are not seasonally adjusted]
During the month of July, the local transportation index was up by +0.3% after increasing by +0.5% in June. Since July 2009, transportation prices have risen by +5.4%. Gasoline prices, which are part of the transportation index, increased by +1.2% last month and by +7.6% over the year. The transportation index comprises about 15% of the Los Angeles CPI all-items index.
Food and beverage prices in the Los Angeles area were down by -0.2% last month after falling by -0.5% during the previous month. From July 2009 to July 2010, consumer prices for food and beverages increased by +0.6%. The housing index rose by +0.1% in July after edging down by the same amount in June. Compared with July 2009, the housing index was down by -0.8%. Apparel prices dropped by - 4.1% for the month and by -0.9% over the year. The index for medical care (out-of-pocket medical expenses) ticked up by +0.2% in July and increased by +3.8% compared with the same period last year. (Kimberly Ritter)
Source: http://www.bls.gov/news.release/pdf/cpi.pdf
http://www.bls.gov/ro9/cpilosa.pdf
The U.S. Commerce Department reported that the U.S. trade deficit expanded to $49.9 billion in the month of June, up from $42.3 billion in May. The June trade deficit was at its highest level since October 2008. Overall, the U.S. trade deficit has more than doubled since reaching its low in May 2009.
U.S. imports rose by +3.0% in June to $200.3 billion. The $5.8 billion monthly increase in imports reflected a climb in demand for consumer goods (televisions & VCRs) and autos & auto parts. Some imports did fall, including industrial supplies & materials. Foods, feeds, and beverages remained unchanged in June.
U.S. exports fell by -1.3% to $150.5 billion in June due to a decline in foreign demand for U.S. made industrial supplies, capital goods, and food & beverages. Some major categories of exports actually experienced an increase including autos and auto parts, other goods, and consumer goods.
The U.S bilateral trade deficit with China continue to expand in June (by +17.4%), rising to $26.2 billion from $22.3 billion in May and continued to be the largest trade deficit with any country. The deficit with China accounts for more than 50% of the total U.S. trade deficit. Imports from China were $32.9 billion in June, while exports were $6.7 billion. Year-to-date, the trade deficit with China has grown by nearly +16%. Imports from China have grown by +37.7% relative to last year, while exports to China have jumped by +21.8%. Despite June’s increase, the monthly trade deficit with China remained below its record level of $28 billion in October 2008. U.S. trade deficits with Canada, Mexico, Japan, Germany, and the European Union all widened in June. (Ferdinando Guerra)
PR: http://www.bea.gov/newsreleases/international/trade/2010/pdf/trad0610.pdf
China: China (Los Angeles Custom District’s #1 trading partner) continued to demonstrate that its economy was slightly slowing down as most economic indicators experienced a decline in acceleration. The rates of increase for retail sales, industrial production, fixed asset investment, and the money supply all fell in July. However, it is very important to understand that all of these figures only dropped by a very small amount and continued to grow at strong paces. The economic data clearly shows that the Chinese economy is not growing as strongly as it was earlier in the year, which should alleviate concerns about the economy overheating. In addition, inflation rose to 3.3% in July, causing real concern as the target rate is 3%. Also, the Chinese trade surplus expanded to its highest level in 18 months moving to $28.7 billion in July. Exports advanced by +38.1%, while imports rose by +22.7% on a year-to-year basis. These rates of increase were lower than the rates recorded in June. Finally, housing prices in July remained flat when compared to June and a on a year-to-year basis they grew by +10.3% after jumping by +11.4% in June.
Germany: Germany (LACD’s #10 trading partner) announced last week that GDP grew by +2.2% in the second quarter on a quarter-to-quarter basis. Europe’s largest economy recorded its largest expansion since reunification in 1990. The German economy expanded by more than +8% on an annualized basis. The biggest contributor to the rise in GDP was the surge in exports as they rose to their highest level since October 2008. Germany’s strong economic performance led to the Eurozone growing by +1% over the quarter. The economic environment in the Eurozone is very similar to the overall situation in the world economy as we have two recovery speeds prevailing across Europe. Germany and France are leading the way in Europe. Italy, Spain, Portugal experienced lower rates of growth in the second quarter, while Greece’s GDP actually contracted in the second quarter. (Ferdinando Guerra)
Tuesday, August 24: L.A. NABE: Los Angeles County Strategic Plan: A discussion of the Economic Development Plan with David Flaks of LAEDC.
11:30 am to 1:30 pm at the City National Bank Building (555 S. Flower St. 13th Floor, Los Angeles)
Endorsed by the LA County Board of Supervisors and the City of Los Angeles, the LAEDC partnered with a diverse group of local entities to formulate this plan. David Flaks is the Senior Vice President of Strategic Initiatives for the LAEDC. He is responsible for directing the LAEDC's consulting, policy and strategic communications competencies to support the implementation of the Strategic Plan for Economic Development in L.A. County (2010-2014) and affect policy in a way that furthers the LAEDC's mandate to attract, grow and retain businesses and jobs in L.A. County.
Saturday, September 25: Valley Economic Development Center: Where's the Money Access to Capital Business Expo
8:00 AM - 2:30 PM at The Odyssey Restaurant (15600 Odyssey Drive), Granada Hills.
Join us for a day of Education, Resources & Business Growth! Discuss your financing needs with lenders – schedule a one-on-one consultation. Obtain information from a wide range of business resource providers. Attend workshops where these topics will be discussed by panels of experts.
Save the Date! Wednesday, November 10: The LAEDC 15th Annual Eddy Awards
6:30 p.m. Reception. 7:30 p.m. Dinner and Awards Program. At the Beverly Hilton. Contact Justin Goodkind (213) 236-4813 for sponsorship and tickets.
The Eddy Awards® is a cocktail, dinner, and awards gala to support fulfillment of the LAEDC mission to attract, retain, and grow businesses and jobs for the regions of Los Angeles County. The Awards were introduced by the LAEDC in 1996 to celebrate individuals, organizations, and now cities that demonstrate exceptional contributions to positive economic development in the region. We are also pleased to present the 2010 Most Business-Friendly City in Los Angeles County award. The winning city will be announced live at the event.
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