The U.S. Census Bureau’s June retail sales report reveals modest gains despite fluctuating spending patterns in recent months, according to National Retail Federation (NRF) Chief Economist Jack Kleinhenz. He noted that while household spending has been uneven, it remains steady despite slower payroll growth, low consumer confidence, and retail goods price deflation. However, high interest rates are discouraging new borrowing by making credit purchases more expensive.
Key highlights from the report:
- Overall retail sales in June remained flat month over month but increased by 2.3% year over year.
- May saw increases of 0.3% month over month and 2.6% year over year.
- Core retail sales (excluding automobile dealers, gasoline stations, and restaurants) rose by 0.9% month over month and 1.3% year over year in June.
- For the first half of 2024, core retail sales grew by 3.2% year over year, aligning with NRF’s forecast of a 2.5%-3.5% growth over 2023.
Additionally, the CNBC/NRF Retail Monitor, using actual credit and debit card data from Affinity Solutions, reported a 0.3% month-over-month increase and a 3.07% year-over-year rise in core retail sales for June, slightly down from May’s figures.
