June retail sales post gains, report Commerce and NRF

United States retail sales were up in June, according to data issued today by the United States Department of Commerce and the National Retail Federation (NRF).

Commerce reported that June retail sales, at $506.8 billion, were up 0.5% annually and were ahead of May’s revised $504.3 billion. Total retail sales for from April through May are up 5.9% annually. And retail trade sales were up 0.3% over May and up 6.4% annually, with non-store (e-commerce and online) sales saw a 10.2% annual gain.

NRF reported that June retail sales, which exclude sales from automobiles, gas stations, and restaurants, were up 0.07% compared to May, with sales up 4.2% annually on an unadjusted basis. The organization pointed out that this growth occurred despite the global trade outlook, highlighted by U.S. trade tensions with China, as well as other countries.

NRF also noted that the three-month moving average from April to June was up 4.4% annually, which is in line with its 2018 full-year forecast of a 3.8%-4.4% annual retail sales gains.  

“This is a healthy retail sales report and consistent with underlying economic momentum that has fueled a steady run of retail sales increases,” NRF Chief Economist Jack Kleinhenz said. “The big question is whether households can continue this spending pace, which is helping drive the current economic cycle. We think they can, but the big risk to the outlook is the trade war, which could raise prices while reducing consumer confidence and household buying power.”

Some key sector data for June cited by the NRF included:

• Online and other non-store sales were up 7.3 percent year-over-year and up 1.3 percent month-over-month seasonally adjusted;
• Health and personal care stores were up 5.8 percent year-over-year and up 2.2 percent month-over-month seasonally adjusted;
• Clothing and clothing accessory stores were up 4.6 percent year-over-year but down 2.5 percent month-over-month seasonally adjusted;
• Furniture and home furnishings stores were up 4.4 percent year-over-year and up 0.6 percent month-over-month seasonally adjusted; 
• Grocery and beverage stores were up 4.2 percent year-over-year but down 0.3 percent month-over-month seasonally adjusted; 
• General merchandise stores were up 3.1 percent year-over-year but down 0.8 percent month-over-month seasonally adjusted; 
• Building materials and garden supply stores were up 2.8 percent year-over-year and up 0.8 percent month-over-month seasonally adjusted; and
• Electronics and appliance stores were up 1.6 percent year-over-year but down 0.4 percent month-over-month seasonally adjusted