US Retail Sales Rose 0.6% In June, Better Than The Decline Seen

As the economy improved and pandemic-related restrictions were eased, US retail sales rose because Americans spent more on clothes, gadgets, and dining out last month.

According to the US Commerce Department, retail sales increased by 0.6 % compared to the previous month. Wall Street experts were surprised by the gain since they had predicted a modest drop in sales last month.

Since March, when stimulus checks were distributed to the majority of Americans, spending has slowed. In addition, when more people become vaccinated, they spend less on commodities and more on hotels, haircuts, and other services, which is not represented in Friday’s data.

According to Paul Ashworth, chief US economist for consultancy company Capital Economics, the increase last month might be attributable to rising pricing.

Food, petrol, and other products are costing more in the United States, with prices increasing the highest in 13 years last month.

Sales at pubs and restaurants increased by 2.3 percent, according to the Commerce Department. Clothing store sales increased by 2.6 percent, while electronic store sales increased by 3.3 percent.

Automobile dealerships saw a 2% drop in sales. Due to a worldwide scarcity of chips, which are required to operate in-car displays and other electronics, automakers are producing fewer automobiles, resulting in fewer cars available for purchase. When car sales are taken out of the equation, retail sales are up 1.3 percent.

Furniture retailers saw the greatest decline in sales in June, down 3.6 percent. Home improvement businesses and sporting goods stores also saw a drop in sales.

Leave a Reply

Your email address will not be published.

error: Content is protected !!