US Retail sales rose higher than expected in June as consumers shopped for motor vehicles and other goods, even as they paid more for gasoline.
Retail sales rose 1.0% last month, the Commerce Department said on Friday. Figures for May were revised to show that sales were down 0.1%, rather than the 0.3% decline previously reported.
Economists polled by Reuters were forecasting a 0.8% increase in retail sales, with forecasts for a 2.2% increase from a 0.2% decline. Retail sales consist primarily of merchandise and are not adjusted for inflation.
US consumer prices rose 9.1% year-on-year in June, the biggest increase since November 1981, putting the Federal Reserve on track to hike the interest rate further to 0.75 percent later this month. , Since March, the US central bank has raised interest rates by 1.50 points.
Gasoline prices rose by an average of $5 a gallon in June, according to data from the American Automobile Association (AAA). But they have since fallen from last month’s record highs and averaged $4.577 a gallon on Friday.
Retail sales were also boosted by motor vehicle purchases following the pressure of shortages.
Excluding automobiles, gasoline, building materials and food services, retail sales grew 0.8% in June. May’s figures were revised to show that those sales were down 0.3%, not unchanged as previously reported.
Core retail sales are closer to the consumption component of GDP.
Henry Lawson is a contributor at Sproutwired.com, covering a wide range of topics including news, politics, business, technology, sport, entertainment and lifestyle. He focuses on delivering clear, accurate and reader-friendly reporting that helps audiences stay informed about current affairs and important developments. With an emphasis on useful information and balanced coverage, Henry aims to highlight stories that matter most to readers, providing context and insight in a straightforward and accessible way.
