Statistics from the U.S. Commerce Department revealed a rather mixed bag on Monday, as retail sales went up 0.4 percent month-over-month in June.
Statistics from the U.S. Commerce Department revealed a rather mixed bag on Monday, as retail sales went up 0.4 percent month-over-month in June. This was a slightly lower growth figure from the previous month’s, which was at 0.5 percent.
The data revealed that sales were driven upwards mainly by a 1.8 percent jump in automobile purchases, the highest increase since November 2012. Higher gasoline prices also served as a fillip for retail growth, as service station sales ticked up by 0.7 percent in June. With automobile, gasoline and building supply sales not figured into the equation, core retail sales went up by just 0.15 percent, the lowest month-over-month increase since January 2013.
This also meant that Americans generally spent less money dining at restaurants or making department store purchases in June. Home Depot sales, for instance, were down 2.2 percent month-over-month, while computer and consumer electronics purchases were also at lower month-over-month levels in June. Economists believe that economic growth for the June 2013 ending quarter may be at or below 1 percent with annualization, which is down from the already-low 1.8 percent annualized rate in the March 2013 ending quarter.
According to Capital Economics senior economist Paul Dales, subpar retail sales in the recent quarter have been a “disconcerting” trend.
Aside from increased automobile and truck purchases, the Department of Commerce had other positive news to report. Furniture sales were up 2.4 percent in June, which could hint at the housing market’s steady growth, as Americans are likely spending more on home improvement and redecoration.
In addition, clothing store and general merchandise sales from retailers such as Wal-Mart and Target were also up in June. For the second half of 2013, financial experts forecast an annualized 2.5 percent growth rate, as the impact of government budget cuts and federal tax increases continues to diminish.