According to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment, U.S. consumer retail spending, excluding automotive, increased 9.5 percent year-over-year (YOY) in June, while retail sales, excluding auto and gas, rose 6.1 percent YOY.
Rising prices for necessities, including food and fuel, were a contributing factor, as Mastercard reflected nominal spending and is not adjusted for inflation.
Excluding auto and gas, in-store spending was up 11.7 percent YOY in June, while e-commerce grew slower this month (up 1.1 percent YOY). Sales for e-commerce remained roughly double June 2019 levels. Nominal spending growth was down slightly compared to May, though it remains consistent with growth levels seen earlier in 2022.
As inflation continues, consumers are paying more for essentials. Two categories with higher inflation saw a lift in sales. June sales for Fuel & Convenience were up 42.1 percent YOY/55.7 percent YO3Y (year-over-year three years ago) and Grocery 14 percent YOY/24.8 percent YO3Y.
Discretionary spending continued to drive growth across the fashion-forward sectors in June, including Jewelry, 16.2 percent YOY/86.6 percent YO3Y, Luxury, 4 percent/54 percent YO3Y and Department Stores, 8.6 percent YOY/21.4 percent YO3Y.
Consumers continue to spend on travel. Airlines and Lodging are up 18.2 percent YOY/7.3 percent YO3Y and 33.7 percent YOY/30.4 percent YO3Y, respectively.
“Sector by sector, we’re seeing a varied picture of how inflation is impacting essential versus discretionary consumer spending,” said Steve Sadove, senior advisor, Mastercard and former CEO and Chairman, Saks Inc. “One notable highlight is that travel sectors, such as airlines and lodging, continue to show strong demand.”
