The Commerce Department said Thursday that retail sales rose a modest 0.1 percent last month. That follows a 0.1 percent decrease in May, the first time in 11 months that sales fell.
But the Commerce Department that the results were stronger than private-sector expectations of a 0.2-percent decline. Excluding motor vehicles, retail sales were unchanged, matching private-sector expectations. Sales at gasoline stations declined 1.3 percent, largely due to a May-to-June drop in gas prices.
“Despite significant headwinds both at home and abroad that have been weighing on American consumers, todays data show that their spending continues to grow,” U.S. Commerce Secretary Gary Locke said. “Gas prices eased in June, and that will help consumers in the coming months. But one of the most important and urgent things we can do for the economy and job creation is to show the American people that we can still do big things in Washington by reaching an agreement on a balanced approach to deficit reduction that addresses our fiscal challenges while still investing in our future growth.”
The International Council of Shopping Centers said the 0.1 percent gain in June versus May following an upward revision to May’s pace (which is now less negative), but an offsetting downward revision to the April gain. In June, department store sales (+1.4 percent) led stores, followed by building material and garden shops (+1.3 percent). June motor vehicle sales also posted a healthy 0.8 percent gain–after months of decline. Clothing store demand rose–maybe on the heels of higher prices–with a 0.7 percent in June, which was its strongest month since March. But some weakness lingered at furniture stores (-0.8 percent) and even electronics stores (-0.8 percent in June which extended is month-over-month decline to three consecutive). Lower gasoline prices pulled down gasoline station sales (-1.3 percent) in June.
Overall, shopping-center sales–ICSC benchmark compiled from these Census data–rose by 0.3 percent in June, following a flat reading in May and a similar 0.3 percent gain in April.
On a year-over-year basis, total retail sales grew by 8.1 percent in June–its strongest pace since April 2010 (+8.5 percent). Shopping-center sales rose by 4.9 percent, year-over-year, in June, its strongest pace since November 2010 (+5.1 percent).
Broadly, the ICSC said these statistics are favorable and consistent with steady and strong demand, with non-vehicle, non-gasoline sales up 5.7 percent in June–relatively consistent with the strength since October 2010.
