ARLINGTON, Va.—Despite prevailing economic headwinds, "U.S. consumers remain resilient," said NAFCU Chief Economist and Vice President of Research Curt Long after new data showed total retail sales increased 0.4% in June.
While Long still anticipates that the Fed will cut rates later this month, "there is not yet a compelling case for further easing this year."
"Retail sales continued to hum along in June," said Long in a NAFCU Macro Data Flash report. "This came in spite of a 2.8% decline in spending at gas stations. Growth in core sales – which excludes the volatile gas category – registered a sturdy 0.7% during the month."
Year-over-year growth in retail sales was 3.4% in June, up from 2.9% in May. Core retail sales increased 3.8% from a year ago, and auto and gas sales grew 2.4%.
Retail Growth
Overall, most of the major retail segments grew during June. The biggest gains were from nonstore retailers (+1.7%), restaurants and bars (+0.9%), and motor vehicle and parts dealers (+0.7%). However, sales dropped for gas stations (-2.8%) and electronics and appliance stores (-0.3%), Long said.
"Once again, it was the nonstore retailer segment which led the way. Online retail is up 13.4% from a year prior; e-commerce makes up over 10% of total retail sales, versus just 4% a decade ago," Long commented.