Retail Sales Beat Expectations in June
July 16, 2019
U.S. consumers were spending more money in June. Retail sales increased 0.4 percent last month, well above the 0.1 percent increase that economists had expected. Moreover, the so-called “core” retail sales, which excludes the more volatile components like gas and food, increased by 0.7 percent. May’s “core” retail sales were also revised up to 0.6 percent.
Strong growth in June, following solid gains in May and April, could mean that consumer spending may be rebounding in the second quarter. Consumer spending, which drives more than two-thirds of total economic activity, was a weak spot in the first quarter’s GDP. Strong consumer spending could bolster the second quarter’s GDP, even as economic slowdown continues.