U.S. retail sales rose at a solid pace in June. This is good news as other economic drivers haven't performed that well.
The US Commerce Department released new data last week, saying that retail sales had risen 0.4 percent in June - a fourth, uninterrupted monthly increase. Sales made by online retailers, grocery stores, home and garden stores and restaurants and bars all grewe. The numbers published by the National Retail Federation (NRF) were even better. The NRF said retail sales had gone up 0.6 percent in June, seasonally adjusted from May, and 2.3 percent up year-over year.
Analysts said that June's figures underscore the importance of consumer spending to the U.S. economy. Business investment has weakened, factory output has faltered, and slower global growth is weighing on exports.
NRF Chief Economist Jack Kleinhenz said: "These are impressive results showing that the consumer remains engaged and that consumer spending gave a boost to the economy in the second quarter. The numbers are consistent with elevated consumer sentiment, healthy household balance sheets, low inflation, and job gains." He noted that wages were increasing and that with the continued creation of new jobs the retail market could expect to see further growth. Retail sales account for about one-third of Americans' spending, while the other two-thirds are in services.