June Retail Sales Grow

Retail sales in June were up as consumers continued to face higher prices as they shopped at their favorite retailers.

The U.S. Census Bureau said overall retail sales in June were up 1% seasonally adjusted from May and up 8.4% year over year. That compared with a 0.1% month-over-month decrease and 8.2% year-over-year increase in May.

Sales figures from the National Retail Federation (NRF), which excludes automobile dealers, gasoline stations and restaurants – showed June was up 0.6% from May and up 5.8% unadjusted year over year. In May, sales were down 0.3% month over month but up 6.3% year over year.

“June retail sales data shows that consumers remain on solid footing despite rising prices and an active Fed raising interest rates to combat it,” said Matthew Shay, president & CEO of the NRF. “Inflation has consumers modifying their spending behavior and prioritizing essentials like food, energy and back-to-school items.”

Jack Kleinhenz, chief economist with the NRF, added while consumers are powering through price pressures, inflation is eating away at savings that was built up during the pandemic while also wiping out recent income gains.

“Inflation remains a challenge to consumers trying to make ends meet and will continue to be an issue even if it cools down in the months ahead,” he said. “Despite that, consumers are holding up notably well and continuing to spend.”

June sales were up in all but two retail categories on a yearly basis, led by online sales, grocery stores and building materials stores, and increased in just over half of the categories on a monthly basis. Specifics from key sectors include:

• Online and other non-store sales were up 2.2% month over month seasonally adjusted and up 9.6% unadjusted year over year.
• Grocery and beverage stores were up 0.4% month over month seasonally adjusted and up 7.5% unadjusted year over year.
• Building materials and garden supply stores were down 0.9% month over month seasonally adjusted but up 6.7% unadjusted year over year.
• Furniture and home furnishings stores were up 1.4% month over month seasonally adjusted and up 4.8% unadjusted year over year.
• Sporting goods stores were up 0.8% month over month seasonally adjusted and up 2.4% unadjusted year over year.
• General merchandise stores were down 0.2% month over month seasonally adjusted but up 2.1% unadjusted year over year.
• Clothing and clothing accessory stores were down 0.4% month over month seasonally adjusted but up 0.2% unadjusted year over year.
• Health and personal care stores were down 0.1% month over month seasonally adjusted and down 0.5% unadjusted year over year.
• Electronics and appliance stores were up 0.4% month over month seasonally adjusted but down 8.7% unadjusted year over year.