Despite Rebate Checks, June Consumer Spending Soft: NRF
Although millions of tax rebate checks hit mailboxes in June, consumer spending remained soft last month, the National Retail Federation reported yesterday.
Retail sales for June—excluding automobiles, gas stations, and restaurants—rose 1.3% unadjusted over last year and increased 0.2% seasonally adjusted month-to-month, the NRF reported.
According to the U.S. Commerce Department total June retail sales—which include autos, gasoline stations and restaurants—increased 0.1% seasonally adjusted from the previous month and increased 1.0 percent unadjusted year-over-year.
“Many consumers have been practical with their tax rebate checks, using them to offset higher prices of gas and food,” said the NRF’s chief economist, Rosalind, Wells in a statement. “As retailers enter the back-to-school season, they will have to be creative in finding ways to get consumers to spend on discretionary items.”
Meanwhile, health and personal care stores sales increased 0.6% seasonally adjusted from last month and 2.7% unadjusted year-over-year, the NRF reported. Also, sales at general merchandise stores increased 0.4% seasonally adjusted month-to-month and 4.8% unadjusted from last year, the NRF said. Sales at food and beverage stores increased 0.7% seasonally adjusted from May and 3.1% unadjusted year-over-year, according to the NRF.
Even though clothing and clothing accessory stores sales were flat year-over-year, sales increased 0.6 percent seasonally adjusted month-to-month, with consumers responding to warmer weather and seasonal markdowns, the NRF reported.
