Financial News: U.S. Retail Sales Rebound Much More Than Expected

U.S. Retail Sales Rebound Much More Than Expected In June

(RTTNews) - Retail sales in the U.S. rebounded by much more than expected in the month of June, according to a report released by the Commerce Department on Thursday.

The Commerce Department said retail sales climbed by 0.6 percent in June after slumping by 0.9 percent in May. Economists had expected retail sales to inch up by 0.1 percent.

"Delayed tariff price increases and steady income growth continue to fuel spending despite weak survey data indicating building concerns by households," said Nationwide Senior Economist Ben Ayers.

He added, "The strong June for retail sales should support a solid rebound for real GDP growth in the second quarter but weaker activity is still likely over the second half of the year as tariff uncertainty hangs over the outlook."

The stronger than expected retail sales growth partly reflected a notable rebound in sales by motor vehicle and parts dealers, which jumped by 1.2 percent in June after plunging by 3.8 percent in May.

However, excluding sales by motor vehicle and parts dealers, retail sales still rose by 0.5 percent in June after edging down by 0.2 percent in May. Ex-auto sales were expected to rise by 0.3 percent.

Sales by miscellaneous store retailers helped lead the way higher, surging by 1.8 percent, while sales by clothing and accessories stores and building material and garden equipment and supplies dealers also saw notable growth.

Meanwhile, sales by department stores slid by 0.8 percent, and sales by electronics and appliance stores and furniture and home furnishings stores edged lower.

Core retail sales, which exclude automobiles, gasoline, building materials and food services, climbed by 0.5 percent in June after rising by 0.2 percent in May.

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