US retail sales increase unprecedented in June; shortages depress the purchase of automobiles
U.S. Department of Commerce data on Friday revealed U.S. retail sales unexpectedly surged in June, as a solid reopening of the U.S. economy kept domestic demand in cloud nine against a backdrop a rapid shift in spending towards goods services, reinforcing analysts ‘opinion that the United States’ economy will accelerate in the second quarter of the year.
Nonetheless, a stronger-than-expected rebound in retail sales in the United States in June occurred despite a drop in motor vehicle sales for a second consecutive month amid a severe semiconductor shortage, while higher auto prices due to supply restrictions had also kept potential buyers at bay.
However, the latest retail sales uplift in the United States appears to have accompanied a significant rise in product prices amid widespread shortages of raw materials and a large-scale supply chain disruption caused by the pandemic. ..
US retail sales increase 0.6% in June, May data revised downward
According to data from the US Department of Commerce released earlier today, retail sales in the United States climbed 0.6% in June, while data for May was revised down to 1.7% instead of a decrease of 1.3%..
However, year over year, US retail sales have grown 18% so far and charter rates 18% above their pre-pandemic level, cementing the tracks strong economic recovery.. Meanwhile, addressing the underlying strength of the US economy which had been illustrated in the latest US retail sales data, Chris Low, chief economist at FHN Financial in New York City, said: “The growing pains associated with reopening are on the supply side.
Inflation reports earlier this week confirm that businesses are still struggling to meet this demand, but another month of high retail spending should give businesses confidence that consumer demand won’t slow anytime soon. “.