EBIZ - U.S. Retailers Receive A Summer Boost

2024-07-16 11:20:00 ET

Summary

• While auto and gasoline station sales fells heavily in June, there was significant strength elsewhere that provided an equal offset.
• It may be that the weather has boosted retail footfall as people try to escape the heat.
• There are still challenges for the sector from weak real income growth, a run down in savings levels and high borrowing costs.

By James Knightley

Retailers beat expectations in June

The June US retail sales report is certainly stronger than expected, although headline sales were still only flat on the month. The consensus was for a 0.3% month-on-month drop and the May figure was revised up two-tenths of a percentage point to 0.3% MoM growth. The details show motor vehicle sales fell 2% MoM, which was broadly in line with the auto volume sales, which we already knew. Gasoline station sales fell 3% MoM due primarily to lower prices, while sporting goods saw sales dip 0.1%....

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