Retail stocks advanced 0.9 percent for the week as hopes of a global economic rebound increased, but a fresh reading of consumer balance sheets for May showed consumers were squirreling away more for savings even after getting government stimulus income.
Despite a rise for the week, the S&P Retail Index dipped 0.1 percent, or 16 points, to 322.89 Friday. The Dow Jones Industrial Average fell 0.4 percent, or 34.01 points, to 8,438.39 Friday and was down 1.2 percent for the week.
European stocks were also down for the week, with the CAC 40 in Paris off 2.8 percent and the FTSE 100 in London down 2.4 percent.
Fueled by government stimulus spending, personal consumption expenditures inched up 0.3 percent to $25.1 billion in May after coming in flat for April, said the Commerce Department Friday. Personal savings as a percentage of disposable income rose to 6.9 percent in May from 5.6 percent in April.
But even as U.S. shoppers remain coy, the broader economy is seen as fighting its way back.
“The world economy will begin its recovery in the second half of 2009 as the global inventory correction winds down,” wrote IHS Global Insight economists Nariman Behravesh and Sara Johnson. “The timing and speed of regional recoveries will vary, with Asia leading, the United States coincident and much of Europe lagging behind.”
The forecasting group said global gross national product would fall 2.6 percent this year and rise 1.9 percent in 2010.
A room full of toiles at the haute couture atelier in the Dior exhibition at Les Arts Décoratifs, open in Paris since July 5. This is just one of three major exhibitions that have been timed to coincide with the house's 70th anniversary. See the rest of the exhibits, plus read WWD's look into the iconic brand's history. Link in bio. #wwdfashion (📷: @dominiquemaitre)
For spring, Pamplemousse's Danica Zheng presented her signature slip dresses attached to a white T-shirt along with floral windbreakers, off-the-shoulder cotton blouses and more. For more highlights from the New York trade shows, go to WWD.com. #wwdfashion
The Green Carpet Fashion Awards closed out Milan Fashion Week yesterday. The fashion industry flocked to the event, showing its efforts to support and spread the message of sustainability. Supermodel Gisele Bündchen said "if each one of us took at least one step is this direction, there is no saying how much could be done." #wwdeye #wwdfashion #mfw (📷: Lodovico Colli di Felizzano)
Etro’s show, titled “The Tree of Life,” was a celebration of the house’s 50th anniversary. “My father founded the company in 1968, which was the year of counterculture and psychedelia. It’s really a show that celebrates that and the paisley design of India and its origin,” said Veronica Etro. #wwdfashion #mfw #ss18 (📷: @delphineachard)
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