US Retail Sales Fare Better Than Expected in June

US retail sales were flat in June compared to the previous month, as consumer sentiment remained stronger than expected. 

Revenue reached $704.3 billion — adjusted for seasonal variation — compared to a 0.3% increase in May, which was revised from the 0.1% increase originally reported last month, according to data the US census Bureau released Tuesday. The result was an improvement from analyst predictions of a drop in June. 

“Consumers are being thoughtful about their spending, prioritizing nondiscretionary purchases as they continue to face high interest rates and lingering inflation,” said National Retail Federation (NRF) CEO Matthew Shay. “Month-over-month sales growth was moderate in June, and year-over-year gains for total retail sales were the largest we’ve seen since last fall.” 

Sales rose 3.4% from the same period a year earlier, on par with May’s 3% year-on-year increase, the NRF noted. Total sales improved 2.4% year on year for the first six months. 

June sales grew year on year in five out of the nine retail categories the NRF monitors. The clothing and accessories segment — which includes jewelry — decreased 0.1% compared to May and advanced 5% versus the same period a year ago. 

Online sales saw the largest year-on-year increase, rising 23%, while building and garden supply stores, electronics and appliances, sporting goods, hobby, music and bookstores, and furniture all fell. 

Image: People at a shopping mall. (Shutterstock)