Increase in retail sales are driven by additional job gains and rising wages.
June retail sales (excluding automobiles, gasoline stations and restaurants) increased 0.8 percent, unadjusted month-to-month and 5.1 percent year-to-year, according to the National Retail Federation.
Most retail segments reported monthly gains, except for apparel and accessories, which reported decreased gains, and electronics, which remained flat. Meanwhile, the building materials and supplies segments reported outsized gains, which were probably related to the strength of the housing market, according to the NRF.
In June, the three-month moving average of retail sales on a year-over-year basis increased 3.8 percent unadjusted.
“June’s retail sales grew at a solid pace on the heels of a strong showing for both May and April,” says Jack Kleinhenz, chief economist, NRF. “Consumer spending rebounded strongly in the second quarter after two weak previous quarters. Additional job gains and rising wages are supporting the strength in retail sales and should provide momentum going into the second half of 2016.”
Other highlights from the NRF’s report include online and other non-store sales increased 1.1 percent seasonally adjusted over the previous month and 13.9 percent unadjusted year-over year; sales at general merchandise stores increased 0.4 percent seasonally unadjusted over the previous month and 1.1 percent year-over-year; sales at sporting goods stores increased 0.8 percent seasonally adjusted month-to-month and 6.1 percent unadjusted year-over-year; and sales at health and personal care stores increased 0.7 percent seasonally adjusted month-to-month and 8.2 percent unadjusted year-over-year.
“The bottom line is that today’s data shows that the consumer sector remains a visible and healthy force in the economy and is expected to fuel growth in the second half of 2016,” adds Kleinhenz.