The U.S. Census Bureau reported that overall retail sales in June were up 0.2 percent from May and up 1.5 percent year-over-year (YoY). In May, sales were up 0.5 percent month-over-month (MoM) and 2 percent YoY.

The growth marked a slower pace than May’s revised 0.5 percent gain and below economists’ expectations of a 0.5 percent gain, according to Refinitiv.

The National Retail Federation stated that retail sales continued to rise in June even as employment grew more slowly.

“June retail sales confirm that while the economy may be cooling, consumers remain on solid footing and are spending on household priorities,” said NRF President and CEO Matthew Shay. “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’s calculation of retail sales, which excludes auto dealers, gas stations and restaurants to focus on core retail, saw June sales were up 0.4 percent from May and up 3.3 percent unadjusted YoY. In May, sales were also up 0.4 percent MoM and 4.4 percent YoY. The NRF’s numbers were up 3.1 percent unadjusted YoY on a three-month moving average as of May and up 4 percent for the first six months of the year.

“The pace of spending is slower but consumers are still in control of the direction of the economy thanks to the still-growing labor market and a comfortable cushion of savings,” NRF Chief Economist Jack Kleinhenz said. “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. 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, 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 percent MoM, seasonally adjusted, and up 9.9 percent unadjusted YoY;
  • Sporting goods stores were down 1 percent MoM, seasonally adjusted, and down 0.9 percent unadjusted YoY;
  • General merchandise stores were down 0.1 percent MoM, seasonally adjusted, but up 1.4 percent unadjusted YoY;
  • Clothing and clothing accessory stores were up 0.6 percent MoM, seasonally adjusted, and up 1.3 percent unadjusted YoY;
  • Furniture and home furnishings stores were up 1.4 percent MoM, seasonally adjusted, but down 3.6 percent unadjusted YoY;
  • Health and personal care stores were down 0.1 percent MoM, seasonally adjusted, and up 6.6 percent unadjusted YoY;
  • Electronics and appliance stores were up 1.1 percent MoM, seasonally adjusted, and up 1.8 percent unadjusted YoY; and
  • Grocery and beverage stores were down 0.7 percent MoM, seasonally adjusted, but up 1.3 percent unadjusted YoY.

Image courtesy National Retail Federation