June Retail Sales Rose 1.0% from May, Up 8.4% YOY

Washington, DC, July 15, 2022-Advance estimates of U.S. retail and food services sales for June 2022 were $680.6 billion, an increase of 1.0% from the previous month, and 8.4% above June 2021, according to the U.S. Census Bureau. Total sales for the April 2022 through June 2022 period were up 8.1% from the same period a year ago. The April 2022 to May 2022 percent change was revised from down 0.3% to down 0.1%.

Retail trade sales were up 1.0% from May 2022 and up 7.7% above last year. Gasoline stations were up 49.1% from June 2021, while food services and drinking places were up 13.4% from last year.

According to the Wall Street Journal, “Shoppers boosted retail spending in June by 1% as inflation reached a new four-decade high, the Commerce Department said Friday.

“Unlike many other economic-data reports produced by the U.S. government, retail sales aren’t adjusted for inflation. That means higher retail-sales figures can reflect higher prices rather than more purchases.

“Annual inflation was 9.1% in June, the fastest pace in more than 40 years.

“Businesses are adding jobs at a solid clip and workers are receiving wage increases. Household finances are also remarkably strong. Those factors are helping position consumers to continue spending as inflation surges, economists say.

“’The consumer has the ability to navigate these price increases,’ said Michelle Meyer, chief U.S. economist at the Mastercard Economics Institute. ‘But clearly there is some frustration.’

“High inflation has taken a toll on consumer sentiment in recent weeks. The University of Michigan’s index of consumer sentiment hit its lowest level on record in June, with nearly half of surveyed consumers blaming inflation for eroding their living standards.

“Consumer spending is the main driver of the economy. Spending surged throughout much of the pandemic, but it now shows signs of cooling. A separate spending report from the Commerce Department, which will publish June data later this month, includes details on services spending. That report showed consumer spending grew 0.2% in May, a sharp slowdown from 1.9% growth in January.”