Although consumer product prices continued to climb and travel and entertainment spending increased, the US retail sales increased in June, driven by strong demand from electronics stores, clothing stores, and restaurants.

According to a Reuters survey of economists, data released by the U.S. Census Bureau on Friday showed that sales increased by 0.6% from the previous month, exceeding the expected drop of 0.4%.

After a surge in shopping activity earlier this year, retail spending has slowed in recent months. In May, as the boost from federal stimulus checks continued to weaken, sales fell by 1.7%, lower than the initial estimate of minus 1.3%.

Shoppers face “Sticker vibration“A range of commodities from chicken to used cars. Consumer Price Index Skipped In June, it increased by 5.4% year-on-year, a 13-year high, and increased by 5% the previous month. Wholesale prices have also climbed, heralding an increase in costs for consumers. The producer price index rose by 7.3% last month, the largest annual increase since at least 2010.

However, consumers have shown their willingness to consume and demand for goods is strong. Since Covid-19 restrictions have been lifted in almost every corner of the United States, many Americans have been booking hotel rooms and tickets for sports events. Retail sales data does not cover service expenditures such as travel and accommodation.

Last month, the National Retail Federation raised its forecast for this year’s sales, which is expected to grow at an annual rate of 10.5% to 13.5% in 2020. Previously it was expected to increase by 6.5%.

The June retail sales report showed that food services, including restaurants and bars, continued to recover, with an increase of 2.3% month-on-month. Sales of electronics and electrical appliances, groceries, gas stations, department stores and pharmacies also increased. Sales at car dealers, furniture stores, and home and garden centers fell.

Excluding fuel, retail sales rose 0.4% from May, after falling by 1.9% last month.


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