The latest preliminary estimates from the U.S. Census Bureau show that U.S. retail and food service sales decided to take a short breather in June 2024, remaining virtually unchanged from May at $704.3 billion. But wait, sales are still up 2.3% compared to June 2023, so it’s not all doom and gloom!
Link to US retail sales data for June 2024
Retail sales, in particular, fell a meager 0.1% from May 2024, but still managed to stay 2.0% above year-ago levels. Non-store retail (also known as online shopping) saw a staggering 8.9% gain from June 2023, while food and beverage services (because we all need a drink sometimes) were up 4.4% year-over-year.
Looking at retail categories, grocery store sales were up 1.7% year-over-year (we gotta eat!), health and personal care stores were up 1.4% (self-care is important), and apparel stores were up 2.9% compared to June 2023 (retail therapy, for example). General merchandise stores also saw sales rise 3.3% year-over-year.
In a surprising development, the percentage change for the period April 2024 to May 2024 was revised upwards from a 0.1% increase to a 0.3% increase. It looks like things were a little better than we thought!
So while US retail spending appeared to take a breather in June, year-over-year growth is still in positive territory, even if it’s not as exciting as last year. Online sales, restaurants, and general merchandise are supporting the growth, which may help balance out some of the less enthusiastic sectors. And don’t forget those revisions – it turns out things weren’t quite as dull as initially reported.
But the nearly flat monthly sales suggest that consumers may be taking a break from their spending as summer begins. Is this just a temporary pause, or are we headed for a slower ride? Only time (and more retail sales reports) will tell! As the backbone of the U.S. economy, retail sales trends will be closely watched to see if consumers are feeling more cautious or taking a moment to catch their breath.