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Retail sales rise 0.2% in June, helped by lower gas prices
Gas station sales fell 5.3% in June, while sales excluding gas stations rose 0.7%, pointing to softer energy costs rather than weaker demand.
U.S. retail sales increased 0.2% in June from the prior month, the Commerce Department reported, but the gain was below both May’s revised 1.0% rise and the 0.3% median forecast from economists polled by FactSet, according to Yahoo Finance.
The article attributes part of the “cooler” headline growth to lower energy prices, noting that CPI data earlier this week showed energy costs fell 5.7% last month, with gas prices down 9.7%. It also highlights how the retail read-through was pulled by a 5.3% drop in gas station sales.
Excluding gas stations, retail sales climbed 0.7%, the report says, suggesting demand held up better than the headline implied. It points to strong discretionary spending, with year over year gains of 15.2% at sporting goods, hobby, musical instrument and book stores, 14.2% at nonstore retailers, 8.6% at electronics and appliance stores, and 6.0% at car dealerships.
The piece also notes that CPI showed inflation fell 0.4% last month, the biggest drop since April 2020, and mentions a Commerce Department revision that lifted the April-to-May increase from 0.9% to 1.0%, a change it says could provide a modest boost to second-quarter expectations.