Economic roundup: Retail sales decline and fewer jobs

With the bulk of Q2 retail earnings dropping this week, major companies will publicly take stock of how the spring and early summer, including the beginning of the back-to-school season, are playing out. To prepare for this avalanche of fresh numbers and (ideally) fresh insights, here is a quick rundown of recent economic news:

Slowdown to decline: While Q2 generally covers the spring months through June, recent federal data indicates that a slowdown in retail spending earlier in the summer has tipped into a full-blown decline. In July, retail sales fell 0.6% month over month, their biggest decline in more than a year, according to the US Census Bureau’s estimates. The drop comes on the heels of slightly slower spending in June, according to the Commerce Department—although in that case, sales were actually up 0.7% when gas stations were excluded from the benchmark. Now the measure is declining even without factoring in gas stations, per the Commerce Department, as key categories such as nonstore retailers see a drop-off.

More from malls: But Q2 includes the stronger spring months as well, and some high-level numbers from Simon Property Group show strength in the sector overall. The largest mall operator and property group reported in its Q2 earnings call last week that total sales volume at its stores increased 7.6% in the quarter, while attributing the gains to “unique activations” such as its fifth annual National Outlet Shopping Day.

In addition, CEO Eli Simon told shareholders that malls are having a “cultural moment” that appears to be bringing in more customers. “People realize that they’re not going away,” he said. “Young people want to hang out here, and there’s an opportunity to really take advantage of that.”

Employment drop: Meanwhile, looking at the job market, there was a sizable decline in employment in July, per the U.S. Bureau of Labor Statistics. While largely due to a pullback in government hiring, retailers contributed to the pullback with 19,400 fewer jobs, representing a 19.4% month-over-month decline.