Retail sales last month rose less than expected - CNN
US retail sales rose by 0.2% in June, falling short of economist expectations despite a boost from events like Amazon's Prime Day. While consumer spending remains resilient, the Federal Reserve is unlikely to shift its interest rate policy based on this data.
Why it matters
Retail sales are a primary indicator of consumer health and economic momentum, influencing Federal Reserve monetary policy decisions.
Spending at US retailers last month was weaker than expected, despite the World Cup drawing tourists from around the world and online sales events. Retail sales rose 0.2% in June from the prior month, the Commerce Department said Thursday, down sharply from May’s revised 1% increase. That was lower than expectations of a 0.3% increase, according to a poll of economists by data firm FactSet. Retail sales are adjusted for seasonal swings but not inflation. The World Cup and Amazon’s Prime Day sale helped boost spending last month, according to economists, though lower gas prices weighed on the government’s retail figures, since they’re not adjusted for inflation. Excluding sales at gas stations, spending in June was up by a solid 0.7%.
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