Although shoppers spent more on a broad range of goods in June, inflation also increased. The good news is that the expected decline in May sales was not as much as predicted.
Consumers are maintaining their spending, which reflects steady income and a strong job market. “As you can see, unemployment is down significantly. If people want to work, they can work,” said Costco CEO Craig Jelinek in an appearance on CNBC’s “Squawk on the Street. “So, my view at the moment: things aren’t so bad.”
Despite mixed messages from big banks, the economy is moving forward. “The consumer has the ability to navigate these price increases,” said Michelle Meyer, chief U.S. economist at the Mastercard Economics Institute. “But clearly, there is some frustration.”