U.S. retail sales unexpectedly increase in June

The Commerce Department reported on Friday the sales at U.S. retailers went up 0.6 percent m-o-m in June, following a revised 1.7 percent m-o-m fall in May (originally a 1.3 percent m-o-m decrease). 

Economists had expected total sales would drop 0.4 percent m-o-m in June.

According to the report, sales at electronics and appliance stores (+3.3 percent m-o-m), clothing and accessories stores (+2.6 percent m-o-m), gasoline stations (+2.5 percent m-o-m) and food services and drinking places (+2.3 percent m-o-m) recorded the biggest increases in June. These gains, however, were partially offset by declines in sales at motor vehicle and parts dealers (-2.0 percent m-o-m), furniture stores (-3.6 percent m-o-m) and building materials and garden equipment and supplies dealers (-1.6 percent m-o-m).

Excluding auto, retail sales jumped 1.3 percent m-o-m in June after a revised 0.9 percent m-o-m decline in the previous month (originally a 0.7 percent m-o-m decrease), being much better than economists’ forecast of a 0.4 percent m-o-m gain.

Meanwhile, closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, and are used in GDP calculations, increased 1.1 percent m-o-m in June after a revised 1.4 percent m-o-m decline in May (originally a 0.7 percent m-o-m drop).

In y-o-y terms, the U.S. retail sales surged 18.0 percent in June after a revised 27.6 percent jump in the previous month (originally a 28.1 percent climb).