U.S. retail sales rose more than expected in June

quote:

---

U.S. retail sales snap back
unemployment, rising COVID-19 loom over recovery

LINK

U.S. retail sales rose more than expected in June as consumers bought big-ticket items like motor vehicles and dined out, but a resurgence in new COVID-19 cases is chipping at the budding recovery, keeping 32 million Americans on unemployment benefits.

Economists attributed the second straight monthly increase in retail sales reported by the Commerce Department on Thursday to the government’s additional weekly $600 checks for the unemployed, a benefit that is set to end on July 31. The expiration of the program will leave millions of gig workers and the self employed among others, who do not qualify for regular state unemployment insurance, without an income.

Economists warned this would undercut consumer spending and the overall economy at a time when new cases of the coronavirus are sky-rocketing, especially in the densely populated South and West, and forcing some authorities in these regions to either close businesses again or pause reopenings.

Retail sales rose 7.5% last month after jumping 18.2% in May, which was the biggest gain since the government started tracking the series in 1992. Economists polled by Reuters had forecast retail sales advancing 5% in June.

Retail sales have rebounded as businesses resumed operations after being shuttered in mid-March in an effort to slow the spread of the respiratory illness. Retail sales in June were driven by an 8.2% increase in receipts at auto dealerships. Consumers stepped up spending at furniture, clothing, electronics and appliance, hobby, musical instrument and book stores. Receipts at restaurants and bars shot up 20.0%.

---