Retail sales continued to rise in June according to the National Retail Federation.
The positive data comes even as employment grew at a much slower rate.
The Federation’s CEO, Matthew Shay, reflected: “June retail sales confirm that while the economy may be cooling, consumers remain on solid footing and are spending on household priorities.
“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.”
While Chief Economist, Jack Kleinhenz, added: “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.
“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.”
The U.S. Census Bureau today said overall retail sales in June were up 0.2% from May and up 1.5% year over year. In May, sales were up 0.5% month over month and up 2% year over year.
NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed June was up 0.4% from May and up 3.3% unadjusted year over year.
In May, sales were also up 0.4% month over month and were up 4.4% year over year. NRF’s numbers were up 3.1% unadjusted year over year on a three-month moving average as of May and up 4% for the first six months of the year.