American Consumption Trends: June Sales and Inflation Impact

2023-07-18 15:13:03

Consumption continued to grow in the United States in June, but less than expected, as Americans regained some purchasing power as inflation slowed, according to data released Tuesday by the Commerce Department.

In June, total retail sales amounted to $689.5 billion, up 0.2% from May.

This is a weaker progression than expected, however, since analysts were expecting an increase of 0.5%, according to the consensus of Briefing.com.

Household spending last month experienced its strongest growth in furniture stores (+1.4% compared to May). Consumers have also returned to bars and restaurants, shunned during the pandemic, but whose sales rose in June by 8.4% compared to June 2022.

The total amount of expenditure for the month of May has also been revised upwards, representing growth of 0.5% against 0.3% initially announced.

Compared to June 2022, total sales are up 1.5%.

The wallets of American households are suffering from high inflation, but in June wages rose more strongly than prices for the first time in two years, according to data released Friday by the Labor Department.

The average hourly wage has indeed increased by 1.2% over one year adjusted for inflation, which has slowed to 3.0% over one year, according to the CPI index.

Retail sales figures are not adjusted for inflation, which mechanically increases the total amount of sales.

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