Retail sales across the US increased in June, despite the higher inflation.
The news comes from the National Retail Federation who went on to describe how the growth has happened despite inflation driving up prices across the board.
Reflecting on the data, NRF President and CEO, Matthew Shay, explained: “June retail sales data shows that consumers remain on solid footing despite rising prices and an active Fed raising interest rates to combat it.
“Inflation has consumers modifying their spending behavior and prioritizing essentials like food, energy and back-to-school items. Unfortunately, modified consumer behavior won’t be sufficient to offset persistent price increases.”
Commenting: “Other policy measures like removing China tariffs, enacting smart immigration reforms and investing in supply chain resiliency are needed to lower costs for American families and put much-needed dollars back into their pockets.”
Chief Economist for the Federation, Jack Kleinhenz, added: “June’s numbers show consumers are powering through price pressures, but inflation is eating away at savings built up during the pandemic and is wiping out recent income gains.
“Inflation remains a challenge to consumers trying to make ends meet and will continue to be an issue even if it cools down in the months ahead. Despite that, consumers are holding up notably well and continuing to spend.”
The U.S. Census Bureau today said overall retail sales in June were up 1% seasonally adjusted from May and up 8.4% year over year. That compared with a 0.1% month-over-month decrease and 8.2% year-over-year increase in May.
NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed June was up 0.6 percent from May and up 5.8 percent unadjusted year over year.
In May, sales were down 0.3% month over month but up 6.3% year over year.
NRF’s numbers were up 5.8% unadjusted year over year on a three-month moving average as of June. Sales were up 7% year over year for the first six months of the year.