June steady retail sales point to stronger U.S. economic growth for second quarter
Date
7/17/2024 5:01:59 AM
(MENAFN) U.S. retail sales remained steady in June, reflecting a robust underlying trend that could enhance economic growth estimates for the second quarter. According to the Commerce Department's statistics bureau, the unchanged retail sales reading for June followed an upwardly revised 0.3 percent increase in May. Economists had predicted a 0.3 percent decline in retail sales, which are predominantly composed of goods and are not adjusted for inflation. Despite the steady performance in June, the outlook for future sales appears less optimistic. Households are increasingly price-sensitive, focusing their purchases on essential needs, a trend highlighted in earnings reports from major retailers and manufacturers.
In June, retail sales excluding automobiles, gasoline, building materials, and food-related services rose by 0.9 percent, following a 0.4 percent increase in May. These figures suggest a stronger economic performance in the second quarter, with growth estimates for April to June around 2 percent, compared to a 1.4 percent growth rate in the first quarter. This steady performance in retail sales could bolster second-quarter economic growth estimates, despite the cautious outlook for future consumer spending.
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