Washington, DC, July 15--America's shoppers emerged from a lull and got into the buying groove in June, driving up sales at the nation's retailers by 0.5 percent, the best showing in three months.
The solid increase reported by the Commerce Department came after retail sales were flat in May, according to revised figures. May's performance was slightly weaker than the tiny 0.1 percent gain the government estimated a month ago.
Shoppers in June snapped up building and garden supplies, sporting goods, clothing and furniture.
The report provided fresh evidence that consumers are keeping their wallets and pocketbooks sufficiently open to support the fragile economy. With consumer spending accounting for two-thirds of all economic activity in the United States, consumer behavior plays a major role in shaping the economic recovery.
The 0.5 percent increase in retail sales in June was the biggest advance since March and marked a slightly stronger performance than the 0.4 percent gain that economists were forecasting.
Important factors in consumer spending these days are low mortgage rates, solid increases in home values and a refinancing frenzy that has left people with extra cash. Those positive forces are helping to offset the fallout from a sluggish job market, where unemployment climbed to a nine-year high of 6.4 percent in June.
Last month, sales of building and garden supplies posted a 2.6 percent increase, a big improvement over May's 0.2 percent decline.
Sales of clothing rose by 1.3 percent in June, on top of a 1.6 percent gain.
At sporting goods, book, music and hobby stores, sales went up by 3 percent in June, a turnaround from the 0.9 percent drop reported in May. Sales of furniture and home furnishings rose by 0.5 percent in June, following a 1.2 percent advance the month before. At health and beauty stores, sales increased 0.8 percent, up from a 0.2 percent rise in May.
Sales at gasoline stations rose 1.3 percent in June, reflecting higher prices at the pump. That compared with a 4.2 percent drop in gasoline station sales in May. Excluding sales at gasoline stations, sales at all other merchants in June went up by a solid 0.5 percent.
At department stores, sales rose 0.2 percent in June, down from a 0.7 percent increase in May.
There were a few soft spots, however. Sales of automobiles dipped by 0.1 percent in June, after a 0.2 percent decline in May. Excluding sales of automobiles, retail sales rose by 0.7 percent in June, a stronger showing than the 0.3 percent advance that economists had forecast.
Sales of electronics and home appliances edged down by 0.1 percent in June, compared with a 1.7 percent increase in May.
And, sales at bars and restaurants slipped by 0.2 percent in June, after nudging up by 1.5 percent in May.
Economists are hopeful that the economy which grew at a tepid 1.4 percent rate in the first three months of this year, will stage a rebound in the second half of this year.
