Retail sales rose more than expected in June when Americans reopened their portfolios after the worst days of the coronavirus pandemic.
U.S. retail sales rose unexpectedly in June, reflecting fairly broad gains in all spending categories and turning a solid quarter for household demand.
The value of overall retail sales rose 0.6% last month after a revised decline of 1.7% in May, Department of Commerce figures showed Friday. Excluding cars, sales jumped 1.3% in June.
The June increase in overall sales exceeded all estimates in a Bloomberg survey of economists. The median projection demanded a 0.3% decrease in June sales, and a 0.4% gain excluding cars.
The value of retail sales has increased dramatically this year, supported by government incentives, high savings and vaccinations. Consumers are beginning to shift more of their purchases towards services. Combined with still strong sales demand, economists forecast household spending to expand at a robust pace in the second quarter.
Nine of the 13 sales categories saw an increase in June sales, including solid gains in electronics and electrical appliances, clothing stores and restaurants.
Sales of used vehicles and parts fell by 2% in June, probably in response to limited inventory that car manufacturers are facing a supply chain crisis. A global shortage of semiconductors has limited vehicle production and pushed up prices.
The so-called control group sales, which are used to calculate gross national product and exclude food services, car dealerships, building materials stores and gas stations, rose 1.1% in June. after a sharp revision to the May decline.
The reopening of the economy, particularly those businesses that are hit hardest by the absence of social activity during the pandemic, helps boost sales.
PepsiCo Inc. it has reported its fastest sales growth in at least a decade, profiting from consumers returning to restaurants, bars and stadiums. Meanwhile, the owner of the Olive Garden Darden Restaurants Inc. it increased sales 80% last quarter – returning to the revenue levels it saw before the pandemic.
- Clothing store sales rose 2.6% last month, from 47.1% a year ago
- Electronics sales have increased 3.3% and increased 37.3% since June 2020
- Receipts in restaurants and bars rose 2.3%
- Sales at over-the-counter retailers, which include e-commerce, rose 1.2% in June
- Service station revenues have climbed 2.5%. Sales data are not adjusted for price changes, so sales reflect both changes in cost and demand.