Americans bump up spending in June as inflation eases in a strong jobs market
Americans increased their spending last month as inflation eased in many areas, and the job market remained remarkably strong
NEW YORK — Americans increased their spending last month as inflation eased in many areas, and the job market remained remarkably strong.
Retail sales rose 0.2% from May to June, following a revised 0.5% increase the previous month, the Commerce Department reported Tuesday.
The figure matched the pace of consumer inflation in June from the prior month, underscoring that shoppers are just about keeping up with pricing pressures. While the headline number of 0.2% was a bit weaker than expected, economists Tuesday focused on data that excludes volatile autos, gas, building materials and food services, which rose a solid 0.6% in June. That 0.6% figure is used to help calculate overall economic growth in the U.S., and it was a pretty strong showing in June.
Shoppers increased spending at electronic stores and furniture and home furnishings stores after a recent pullback. Online sales also had a solid increase. But sales at grocery stores, gas stations and sporting goods stores fell. At restaurants, sales eked out a tiny increase.
The uptick in sales follows an increase in May that pointed to an economy that remains resilient despite rising prices. Yet spending has been volatile this year after surging nearly 3% in January. Sales tumbled in February and March before recovering in April and May.
“While they continue to spend, the June retail sales report suggests that consumers are becoming more thoughtful with their purchases,” wrote Oren Klachkin, U.S economist at Oxford Economics. He pointed to the labor market losing some momentum, declining savings, and interest rates that have made borrowing
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