June Food And Retail Sales Rise Less Than 1%: What You Need To Know

Despite some caution around inflation, headlines on the economy remain optimistic.

Monthly sales for retail and food transactions in June were up $621.3 billion or 0.6%, according to recent data released by the U.S. Census Bureau.

Total sales for the period between April and June 2021 were up 31.5% from the same period a year ago.

The Good News: RSM Economist Joe Brusuelas said the overall economy is running hot, as employment is steadily increasing, wages are rising and savings accounts are growing more robust.

“The one thing that stands out inside the June retail sales is not so much the topline growth of 0.6% but the decline of 2% in motor vehicles and parts did not drag down overall demand, he wrote in an email to Benzinga.

“While, one cannot purchase what is not in the showrooms or available via electronic commerce, overall demand remains robust.”

The Bad News: Despite the positive trends, motor vehicle and furniture sales were down 2% and 3.6%, respectively.

This can be explained by supply chain issues, Brusuelas said. 

What’s Next: Naveen Jaggi, president of retail advisory services at JLL, was glad to see higher sales in food services and retail stores. Jaggi anticipates August netting the highest retail sales year-over-year as many teachers and students return to in-person school.

“We are excited to see retail sales grow again, particularly for food services and drinking places which saw a 2.3 percent increase from last month, and a 2.6 percent increase in apparel stores — now that consumers desire new fashion to go out and return to work,” he said. 

Photo: Jordan Nix via Unsplash.