The latest advance estimates from the U.S. Census Bureau show that U.S. retail and food services sales decided to take a little break in June 2024, remaining virtually unchanged from May at $704.3 billion. But hey, sales were still up 2.3% compared to June 2023, so it’s not all doom and gloom!
Link to U.S. Retail Sales data for June 2024
Retail trade sales, in particular, were down a minuscule 0.1% from May 2024, but they managed to stay 2.0% above last year’s levels. Non-store retailers (a.k.a. online shopping) saw an impressive 8.9% jump from June 2023, while food services and drinking places (because we all need a drink sometimes) were up 4.4% year-over-year.
Looking at the retail categories, grocery store sales rose 1.7% year-over-year (gotta eat!), health and personal care stores were up 1.4% (self-care is important), and clothing stores increased 2.9% compared to June 2023 (retail therapy, anyone?). General merchandise stores also saw sales climb 3.3% from a year ago.
In a plot twist, the April 2024 to May 2024 percent change was revised upward from a 0.1% gain to a 0.3% increase. Looks like things were a bit better than we thought!
So, while U.S. retail spending seems to have taken a little nap in June, year-over-year growth is still in positive territory, even if it’s not as exciting as last year. Online sales, restaurants, and general merchandise are holding up the fort, which might help balance out some of the less enthusiastic sectors. And let’s not forget those revisions – turns out, things weren’t quite as lackluster as initially reported.
But the nearly flat month-over-month sales suggest that consumers might be taking a break from their spending sprees as summer kicks off. Is this just a temporary pause, or are we in for a slower ride? Only time (and more retail sales reports) will tell! As the backbone of the U.S. economy, everyone will be keeping a close eye on retail sales trends to see if consumers are feeling a bit more cautious or just taking a moment to catch their breath.
