United States: Retail sales slow again in June
July 15, 2014
In June, retail sales increased 0.2% over the previous month in nominal terms. The print came in below the upward-revised 0.5% expansion recorded in May (previously reported: +0.3% month-on-month) and undershot market expectations of a 0.6% increase. It also marked the weakest increase since January. A steep drop in sales at building material stores and weaker sales at motor vehicle and parts dealers were behind the deceleration. Sales at health and personal care retailers and at clothing stores registered increases over the previous month although the increases were not enough to offset the deceleration in the aforementioned categories.
Retail sales excluding cars and gas—a closely watched subcategory of the retail trade index—increased 0.4% over the previous month in June. The reading came in just above the 0.3% expansion recorded in May (previously reported: 0.0% mom), but barely undershot market expectations of a 0.5% increase.
Retail sales rose 4.3% compared to the same month last year and came in just below the revised 4.6% increase recorded in May (previously reported: +4.3% year-on-year). The annual trend was down marginally, with annual average growth in retail sales ticking down from 3.9% in May to 3.8% in June.
Author: Carl Kelly, Economist