AI Generated Image
Retail sales last month rose less than expected
CNN • • business
Key Points:
- US retail sales increased by 0.2% in June, below expectations and down from May's revised 1% gain, with lower gas prices contributing to the weaker overall figures.
- Excluding gas station sales, retail spending rose a solid 0.7%, supported by events like the World Cup and Amazon’s Prime Day, indicating continued underlying consumer demand.
- The Federal Reserve is likely to maintain current interest rates, as robust consumer spending and a strong labor market persist despite inflationary pressures.
- Spending growth was strongest among online retailers and car dealerships, while gas stations and health and personal care stores saw notable declines.
- Economic outlook remains cautious, with concerns that ongoing geopolitical tensions and rising energy costs could slow consumer spending in the latter half of the year.
