Retail sales inch up in June — but not in all categories

Retail sales edged up in June as consumers continued to shop. 

Retail sales in June inched up 0.4%  from May and were up 3.3% year-over-year, according to the National Retail Federation, whose calculation excludes automobile dealers, gasoline stations and restaurants to focus on core retail. In May, sales were also up 0.4% month-over-month and were up 4.4% year-over- year. 

The U.S. Census Bureau today said overall retail sales in June rose 0.2% from May and up 1.5% year over year. In May, overall sales were up 0.5% month over month and up 2% year over year.

June sales were up in four categories on a monthly basis, and up  in six out of nine retail categories on a yearly basis, led by online sales.  Month-over-month sales in June fell 1% in sporting good stores and were down 1.2% in building materials and garden supply stores. Grocery store sales were down 0.7% month-over-month.  (See end of article for more.)

“The pace of spending is slower, but consumers are still in control of the direction of the economy thanks to the still-growing labor market and a comfortable cushion of savings,”  said NRF chief economist Jack Kleinhenz. “Jobs aren’t growing as fast as they were, but employment is by no means in a slump, and if consumers have jobs, they have the willingness to spend. “ 

On average, consumer balance sheets remain sturdy and they have the wherewithal to support spending for most of the rest of the year,” Kleinhenz added, citing excess savings built up during the pandemic along with easing inflation.”

Specifics from key sectors in June are below. 

• Online and other non-store sales were up 1.9% month-over-month and up 9.9%   year-over- year.
• Health and personal care stores were down 0.1% month-over-month  and up 6.6% year- over-year.
• Electronics and appliance stores were up 1.1% month-over-month   and up 1.8%  year-over-year.
• General merchandise stores were down 0.1% month-over-month   but up 1.4% year-over- year.
• Clothing and clothing accessory stores were up 0.6% month-over-month and up 1.3% year-over-year.
• Grocery and beverage stores were down 0.7% month-over-month but up 1.3% year- over-year.
• Sporting goods stores were down 1% month-over-month   and down 0.9%  year- over-year.
• Furniture and home furnishings stores were up 1.4% month-over-month  but down 3.6%  year-over-year.
• Building materials and garden supply stores were down 1.2% month-over-month  and down 3.7% year-over-year.