ARLINGTON, Va.—Following a record 18.2% rebound in May, retail sales continued to recover in June and rose 7.5%.
NAFCU's Curt Long noted the increase was supported by spending in discretionary sectors, such as apparel stores which saw a 105% gain.
"The combination of business reopenings and fiscal stimulus clearly has had its effect, but the outlook is clouded by reimposed health-related restrictions and the end of several CARES Act provisions," said Long, NAFCU's chief economist and vice president of research. "NAFCU expects next month’s retail sales report to show some retrenchment as stores close and consumers scale back ahead of the scheduled expiration of enhanced unemployment benefits."
In addition to apparel stores, other segments that saw large rebounds included electronics (+37.4%), furniture stores (+32.5%) and sporting goods stores (+26.5%). Auto sales also saw an 8% gain from the previous month. However, most sectors are still well-below their year-ago levels.
Year-over-year growth in retail sales increased 1.1% in June following a 5.7% fall in May. Control group sales were up 0.2% from a year ago, Long said.