Maryland Business

By: Liz Farmer

It appears consumers are still a little gun shy.

I received two press releases this morning about spending habits and both had the same message: Just because the jobless rate has slowed and the Dow Jones has been climbing from an early March low of 6,550, doesn’t mean spending will suddenly rebound.

According to the National Retail Federation, total seasonally adjusted retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 0.4 percent from March to April.

Even with Easter falling in April this year instead of March last year, spending on groceries, apparel and gifts did not improve. Sales at electronic and appliance stores decreased 2.8 percent from March and clothing and clothing accessories stores sales decreased 0.5 percent. Grocery stores sales also decreased 1.1 percent seasonally adjusted from last month.

Meanwhile in Maryland, general fund sales tax collections for April (March sales) fell 12.6 percent or $42.7 million, the comptroller reported Wednesday. Gross sales tax receipts were down 7.5 percent for the month of April and are up 7.1 percent fiscal year-to-date. But the report points out that growth is due solely from the fact that the tax rate was 6 percent for the first half of this fiscal year, compared to 5 percent the year before.

All in all, still not a rosy picture for retailers — but should we really be expecting any different? After all, just because not as many people are losing their jobs and the stock market isn’t as volatile as it was a few months ago, doesn’t mean people are suddenly finding themselves with more money in their hands.

What should we be looking for from the economy when it comes to revitalizing consumer spending?