Government relief checks, the suspension of student loan payments and super-low interest rates helped.ĭemand outpaced what factories could produce and what ports and freight yards could handle, leading to shortages, delays – and skyrocketing prices. economic activity, have been the engine behind the economic recovery from a slowdown during the pandemic. There is already early evidence of a pushback from consumers that is being reflected in financial reports from some of the country's biggest food producers.Ĭonsumers, whose spending accounts for about 70% of all U.S. He pointed to the labor market losing some momentum, declining savings, and interest rates that have made borrowing money or using credit cards more expensive. “While they continue to spend, the June retail sales report suggests that consumers are becoming more thoughtful with their purchases,” wrote Oren Klachkin, U.S economist at Oxford Economics. Sales tumbled in February and March before recovering in April and May. Yet spending has been volatile this year after surging nearly 3% in January. The uptick in sales follows an increase in May that pointed to an economy that remains resilient despite rising prices. At restaurants, sales eked out a tiny increase. But sales at grocery stores, gas stations and sporting goods stores fell. Shoppers increased spending at electronic stores and furniture and home furnishings stores after a recent pullback. That 0.6% figure is used to help calculate overall economic growth in the U.S., and it was a pretty strong showing in June. While the headline number of 0.2% was a bit weaker than expected, economists Tuesday focused on data that excludes volatile autos, gas, building materials and food services, which rose a solid 0.6% in June. The figure matched the pace of consumer inflation in June from the prior month, underscoring that shoppers are just about keeping up with pricing pressures. Retail sales rose 0.2% from May to June, following a revised 0.5% increase the previous month, the Commerce Department reported Tuesday. NEW YORK – Americans increased their spending last month as inflation eased in many areas, and the job market remained remarkably strong.
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