Retail sales continued to rise in June even as employment grew more slowly, the National Retail Federation reported.
“June retail sales confirm that while the economy may be cooling, consumers remain on solid footing and are spending on household priorities,” NRF President and CEO Matthew Shay said. “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.”
NRF’s 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.”
Kleinhenz added, “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 reported Tuesday that overall retail sales in June were up 0.2 percent from May and up 1.5 percent year over year. In May, sales were up 0.5 percent month over month and up 2 percent 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 percent from May and up 3.3 percent unadjusted year over year.
In May, sales were also up 0.4 percent month over month and were up 4.4 percent year over year.
NRF’s numbers were up 3.1 percent unadjusted year over year on a three-month moving average as of May and up 4 percent for the first six months of the year.
June sales were up in six out of nine retail categories on a yearly basis, led by online sales, health and personal care stores and electronics and appliances stores, and up in four categories monthly.
