Retail Sales in June Grow

Retail sales were up in June as consumers continued to spend despite ongoing concerns over prices, the National Retail Federation (NRF) said.

The U.S. Census Bureau said overall retail sales in June were up 0.2% from May and up 1.5% year-over-year. In May, sales were up 0.5% month-over-month and up 2% year-over-year.
NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed June was up 0.4% from May and up 3.3% unadjusted year-over-year. In May, sales were also up 0.4% month-over-month and were up 4.4% year-over-year. NRF’s numbers were up 3.1% unadjusted year-over-year on a three-month moving average as of May and up 4% for the first six months of the year.

“June retail sales confirm that while the economy may be cooling, consumers remain on solid footing and are spending on household priorities,” said Matthew Shay, NRF president and CEO. “Back-to-class spending is one of the most important shopping occasions of the year, and NRF’s consumer research shows that back-to-school and college spending is expected to set new records. Consumers are looking for the best value and deals, and retailers are well stocked with essential items for families and students.”

NRF Chief Economist Jack Kleinhenz added that while the pace of spending is slower, consumers are still in control of the direction of the economy thanks to the still-growing labor market and a comfortable cushion of savings.

“Jobs aren’t growing as fast as they were, but employment is by no means in a slump, and if consumers have jobs, they have the willingness to spend,” he said. “On average, consumer balance sheets remain sturdy and they have the wherewithal to support spending for most of the rest of the year. That’s thanks, in part, to excess savings built up during the pandemic along with easing inflation.”

June sales were up in six out of nine retail categories on a yearly basis, led by online sales, health and personal care stores and electronics and appliances stores, and up in four categories on a monthly basis. Specifics from key sectors include:

• Online and other non-store sales were up 1.9% month-over-month seasonally adjusted and up 9.9% unadjusted year-over-year.
• Health and personal care stores were up 0.1% month-over-month seasonally adjusted and up 6.6% unadjusted year-over-year.
• Electronics and appliance stores were up 1.1% month-over-month seasonally adjusted and up 1.8% unadjusted year-over-year.
• General merchandise stores were down 0.1% month-over-month seasonally adjusted but up 1.4% unadjusted year-over-year.
• Clothing and clothing accessory stores were up 0.6% month-over-month seasonally adjusted and up 1.3% unadjusted year-over-year.
• Grocery and beverage stores were down 0.7% month-over-month seasonally adjusted but up 1.3% unadjusted year-over-year.
• Sporting goods stores were down 1% month-over-month seasonally adjusted and down 0.9% unadjusted year-over-year.
• Furniture and home furnishings stores were up 1.4% month-over-month seasonally adjusted but down 3.6% unadjusted year-over-year.
• Building materials and garden supply stores were down 1.2% month-over-month seasonally adjusted and down 3.7% unadjusted year-over-year.