Retail Sales Drop Unexpectedly in June

Retail sales in June, excluding autos, gasoline and restaurants, decreased 0.2 percent seasonally adjusted month-to-month while increasing a solid 3.1 percent unadjusted year-over-year, according to the U.S. Department of Commerce.

Among channels:
•    Sporting goods stores sales decreased 0.1 percent seasonally adjusted from the previous month but increased a strong 8.9 percent unadjusted year-over-year;
•    Furniture and home furnishings stores sales eased 1.6 percent month-to-month, and increased 6.5 percent unadjusted year-over-year.
•    Clothing and accessories stores sales slid 1.5 percent month-to-month and increased 2.5 percent unadjusted from last year;

Overall retail sales – including autos, gasoline and restaurants – in June decreased 0.3 percent seasonally adjusted from the previous month but increased 1.4 percent unadjusted year-over-year.

In a separate statement, Jack Kleinhenz, NRF chief economist, said June’s weaker than expected results may partly reflect the deflationary environment at retail that’s constricting top-line growth. He remains optimistic that sales through the remainder of the year will improve.

“While consumer spending continues to be erratic and varied, going forward I expect to see improvements in retail sales, supported mostly by the U.S.’s healthy labor market, improving housing markets and easier access to consumer credit,” said Kleinhenz. “While the weaker than expected report doesn’t match with current trends, there’s no reason to believe this is a continuing problem. Heading into the back-to-school season and through the remainder of the year, consumers should find the appetite to spend.”

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

Retail Sales Drop Unexpectedly in June

Retail sales in June, excluding autos, gasoline and restaurants, decreased 0.2 percent seasonally adjusted month-to-month and increased a solid 3.1 percent unadjusted year-over-year, according to the U.S. Department of Commerce.

In a statement from the NRF, Jack Kleinhenz, NRF chief economist, said the weaker than expected June retail sales report leaves more questions
than answers, but he remains optimistic that sales
through the remainder of the year will improve.

The U.S. Department of Commerce announced that retail sales in June decreased 0.3 percent seasonally adjusted from the previous month but increased 1.4 percent unadjusted year-over-year.

“While consumer spending continues to be erratic and varied, going forward I expect to see improvements in retail sales, supported mostly by the U.S.’s healthy labor market, improving housing markets and easier access to consumer credit,” said NRF Chief Economist Jack Kleinhenz. “While the weaker than expected report doesn’t match with current trends, there’s no reason to believe this is a continuing problem. Heading into the back-to-school season and through the remainder of the year, consumers should find the appetite to spend.

“June’s weaker than expected results may also reflect the deflationary environment we’re seeing within retail, thereby pushing down top-line sales figures for retailers,” continued Kleinhenz.


Data source: U.S. Census Retail Sales

Sales varied across the board:

  • Furniture and home furnishings stores: Sales decreased 1.6 percent month-to-month, and increased 6.5 percent unadjusted year-over-year.
  • Sporting goods stores: Sales decreased 0.1 percent seasonally adjusted from the previous month but increased a strong 8.9 percent unadjusted year-over-year.
  • Clothing and accessories stores: Sales decreased 1.5 percent month-to-month and increased 2.5 percent unadjusted from last year.
  • Non-store: Sales decreased 0.4 percent seasonally adjusted from previous month, and increased 6.9 percent over previous year.

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

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