U.S. retail sales reportedly jumped more than expected in June leading to indications that consumers are still maintaining their spending despite having to pay more to get a variety of goods and services.
According to the Department of Statistics, retail sales that were not adjusted for inflation increased by 1% from May. The May data was revised to show a decrease of only 0.1% from the original estimate of 0.3%. On an annual basis, sales increased 8.4% from June 2021.
Core sales, which exclude cars, also increased by 1.0%, more significantly than the expected 0.6% increase.
The data was released after Federal Reserve Governor Chris Waller said that if retail and housing sales data for last month came out stronger than expected, he would be open to raising the Fed’s interest rate target by a full 1% at the Fed’s policy meeting in late July.
It should be noted, however, that some view it as insufficient to change market consensus, given that the President of the Federal Reserve St. Louis James Bullard loudly spoke out to tighten policy. He personally expects a rise of just 75 basis points this month.
Sales at petrol stations recorded the strongest increase in any category, with an increase of 3.6% during the month. It rose a staggering 49% from the previous year, due to rising global crude oil prices since Russia’s invasion of Ukraine.
The US dollar index continued its decline to the trading level of 107.9.
