ARLINGTON, Va.—After falling in May, retail sales rebounded 0.6% in June.
"Retail sales rose in June, overcoming the dip in auto sales due to supply constraints," said Curt Long, NAFCU's chief economist and vice president of research. "Excluding auto sales rose 1.3% but with mixed results across sectors. Some sectors, such as nonstore retailers, have risen 15% annual compared to 2019, while others such as restaurants and department stores have only recently returned to their pre-pandemic levels."
The electronic goods sector rose 3.3%, followed by the apparel sector (+2.6%) and gas stations (+2.5%). The largest drops were in furniture stores (-3.6%), motor vehicle and parts dealers (-2%) and sporting goods stores (-1.7%).
Year-over-year retail sales were up 18% in June, which is down from 28.1% in May. Control group sales – which excludes auto, gas, and building material categories – were up 16.8% from a year ago.
"Reopenings are also dampening retail sales as more spending shifts back to services and consumers have spent a year stocking up on goods with their abundant cash," concluded Long. "NAFCU expects retail sales to remain strong but volatile as spending shifts around, the job market recovers, and supply chains sort out their problems."