U.S. Retail Rose 7.5% in June as Stores Reopened; Jobless rate edges downward

quote:

---

WSJ

U.S. retail sales increased 7.5% in June as stores and restaurants reopened and consumers bought big-ticket items and resumed clothing purchases, but a recent rise in virus cases could again dampen spending.

The Commerce Department on Thursday said the June increase in retail sales—a measure of purchases at stores, at restaurants and online—totaled $524.3 billion, up from $487.7 billion in May and nearly back to pre-pandemic levels. The total was driven by a pickup in sales at motor vehicle dealers, furniture, clothing and electronic stores.

Spending on gasoline increased 15.3% from the prior month as commuters got back on the roads. Sales at bars and restaurants jumped 20% from May, while online spending decreased 2.4% last month and sales at grocery stores dropped 1.6%.

The Labor Department separately said new unemployment claims by laid-off workers decreased by a seasonally adjusted 10,000 to 1.3 million for the week ended July 11, extending a trend of gradual declines from a peak of 6.9 million in late March.

Higher retail sales comes on the heels of lockdowns to contain the pandemic during the spring that triggered an economic shock and record declines in retail sales and other business activity. Government stimulus, such as enhanced unemployment insurance for laid-off workers, and virus-induced shifts in spending patterns have helped propel the rebound.

Marshal Cohen, chief industry adviser at the NPD Group, Inc., a market research firm, said lower spending on experiences such as concerts and summer camp due to the pandemic has put more money in consumers’ pockets to spend on tangible items, such as televisions and gym equipment, helping drive retail-sales gains.

---