• U.S. retail sales unexpectedly increase in June

Market news

16 July 2021

U.S. retail sales unexpectedly increase in June

The Commerce Department reported on Friday the sales at U.S. retailers went up 0.6 percent m-o-m in June, following a revised 1.7 percent m-o-m fall in May (originally a 1.3 percent m-o-m decrease). 

Economists had expected total sales would drop 0.4 percent m-o-m in June.

According to the report, sales at electronics and appliance stores (+3.3 percent m-o-m), clothing and accessories stores (+2.6 percent m-o-m), gasoline stations (+2.5 percent m-o-m) and food services and drinking places (+2.3 percent m-o-m) recorded the biggest increases in June. These gains, however, were partially offset by declines in sales at motor vehicle and parts dealers (-2.0 percent m-o-m), furniture stores (-3.6 percent m-o-m) and building materials and garden equipment and supplies dealers (-1.6 percent m-o-m).

Excluding auto, retail sales jumped 1.3 percent m-o-m in June after a revised 0.9 percent m-o-m decline in the previous month (originally a 0.7 percent m-o-m decrease), being much better than economists’ forecast of a 0.4 percent m-o-m gain.

Meanwhile, closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, and are used in GDP calculations, increased 1.1 percent m-o-m in June after a revised 1.4 percent m-o-m decline in May (originally a 0.7 percent m-o-m drop).

In y-o-y terms, the U.S. retail sales surged 18.0 percent in June after a revised 27.6 percent jump in the previous month (originally a 28.1 percent climb).

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