U.S retail sales increased in June as economic growth accelerates

Retail sales in the United States increased in June as demand for products remained robust despite spending move back to services and the economy reopened extensively.

The retail sales rose 0.6 % in June compared to May,  according to data by the Commerce Department on Friday.  Excluding automobiles, sales increased by 1.3 % in June.

The Commerce Department announced a recovery despite motor vehicle purchases drop significantly due to a lack of supplies caused by a global semiconductor shortage. The lack of new vehicles is increasing the demand for secondhand cars and trucks, which is contributing to inflation.

Retail sales have increased considerably this year, owing to government stimulus, increased savings, and vaccinations. Consumers are beginning to move their purchasing habits toward services. When combined with still-strong retail demand, analysts predict that household spending will rise at a rapid rate in the second quarter, Bloomberg reported.

Sales increased in nine of 13 retail categories in June, with strong growth in electronics and appliance stores, apparel stores, and restaurants while sales at automobile and parts dealers decreased 2%.

In June, after a sharp downward revision in May, sales from the so-called control group used to compute domestic gross product excluding food services, car dealers, building equipment stores and fuel stations climbed 1.1%.

Automobile sales decreased by 2.0% while sales climbed 2.6 % at clothes retailers. Consumers boosted restaurant and bar expenditure resulted in a 2.3% increase in receipts.

Electronics and equipment store receipts climbed 3.3%, with sales in furnishings stores declining 3.6%. Sales of sports items, hobbies, musical instruments, and bookstores fell 1.7%.

Moreover, Online retail sales climbed 1.2% whereas sales at building material stores decreased 1.6 %.

With inputs from Bloomberg