Jul 16, 2024 -
Economy
Americans' retail spending flat in June as gas prices, auto sales dip
Courtenay Brown
Retail sales were flat in June as big price declines in gasoline and a cyberattack in the auto sector dragged down the overall spending figure, the federal government said on Tuesday.
Why it matters: Stripping out autos and gas, American consumers spent at a healthy rate — defying other data that suggested spending had cooled.
Without autos and gas, retail sales rose a strong 0.8%.
By the numbers: Last month's shopping activity didn't pick up from May, when retail sales rose 0.3%. That figure was revised higher by 0.2 percentage points.
The value of purchases at gas stations fell 3% in June as energy prices plunged. Retail sales tracks the value of sales transactions across retailers, though the data is not adjusted for inflation. The decline in overall prices last month — particularly for energy costs — makes spending look weak.
Meanwhile, a cyber attack on auto dealers likely restrained purchasing activity: sales for vehicles and auto parts fell 2%.
Between the lines: Retail sales increased in nearly all of the other categories tracked by the government.
Retail sales at online retailers jumped nearly 2%. At homebuilding supply stores, sales rose 1.4%. Retail sales rose almost 1% at health and personal care stores.
Sporting goods stores was the only other category with a pullback (-0.1%) in sales.
The bottom line: Recent economic data suggested American consumers were slowing spending.
When you exclude the distortions from gas and autos, the latest retail sales data muddles that narrative.
https://www.axios.com/2024/07/16/us-spending-retail-sales-economy-june
