WASHINGTON, DC - The impacts of inflation are being felt all throughout our industry, but recent data shows good signs for the retail sector. The National Retail Federation (NRF) recently revealed that retail sales for the month of June saw an increase even amidst high rates of inflation.
“June retail sales data shows that consumers remain on solid footing despite rising prices and an active Fed raising interest rates to combat it,” President and Chief Executive Officer Matthew Shay said. “Inflation has consumers modifying their spending behavior and prioritizing essentials like food, energy, and back-to-school items. Unfortunately, modified consumer behavior won’t be sufficient to offset persistent price increases. Other policy measures like removing China tariffs, enacting smart immigration reforms, and investing in supply chain resiliency are needed to lower costs for American families and put much-needed dollars back into their pockets.”
As outlined in a recent release, NRF’s calculation of retail sales showed June was up 0.6 percent from May and up 5.8 percent unadjusted year over year. In May, sales were down 0.3 percent month over month but up 6.3 percent year over year. These calculations exclude automobile dealers, gasoline stations, and restaurants to focus on core retail sales.
According to the U.S. Census Bureau, overall retail sales in June were up 1 percent seasonally adjusted from May and up 8.4 percent year over year, compared to a 0.1 percent month-over-month decrease and 8.2 percent year-over-year increase in May.
“June’s numbers show consumers are powering through price pressures, but inflation is eating away at savings built up during the pandemic and is wiping out recent income gains,” Chief Economist Jack Kleinhenz said. “Inflation remains a challenge to consumers trying to make ends meet and will continue to be an issue even if it cools down in the months ahead. Despite that, consumers are holding up notably well and continuing to spend.”
To get a further breakdown of the retail sector’s performance for the month of June, click here.
As companies and consumers look to overcome the pressures of ongoing inflation, AndNowUKnow will report on the latest.
