Grubb & Ellis Montana Commercial, LLC

Retail Sales Monthly % Change, Seasonally AdjustedJune 14, 2010

Retail sales slipped unexpectedly in May with seasonally adjusted sales falling by 1.2 percent from April and core sales, which exclude autos and gasoline, dropping by 0.8 percent. For total sales, it was the largest drop since September 2009, the month after the cash-for-clunkers program expired, while core sales recorded its sharpest decline since March 2009, the month when the stock market bottomed. Coming on the heels of a disappointing employment report showing just 41,000 net new private-sector jobs created in May, the retail sales report raises questions about the durability of the U.S. recovery particularly in light of the fiscal and economic headwinds blowing from Europe. The consensus among economists is for growth to continue at a slower pace in the second half of 2010 and then firm up in 2011. The depth of the recent recession coupled with the frustratingly slow recovery suggests that the return to equilibrium for commercial real estate leasing markets will be sluggish and is likely to extend for several years. Source: Census Bureau, Grubb & Ellis

Bob Bach is our Senior Vice President, Chief Economist

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