U.S. consumers spent less at stores and restaurants in June than economists expected, but a surge in online sales helped offset a slowdown in businꦚess at gas stations, general retail stor⛦es, and automobile dealerships.

The Census Bureau reported retail sales reached $689.5 billion in June, an increase of 0.2% over May, but less than the 0.5% that economists were looking to see. Retail sales were 1.5% highe💦r than they were in June 2022, the report showe♎d.

“While they continue to spend, the June retail sales report suggests that consumers are becoming more thoughtful with their purchases,” wrote Oren Klachkin, lead U.S. economist at Oxford Economics, in a report. “Buoyant job and wage growth means that incomes are rising faster than prices, delivering a boost to consumers' real spending power that's mitigating the constraint of higher interest rates and tighter lending standards.”

Noteworthy in the report was the 1.9% month-over-month increase in non-store retailers, which represents Amazon and other online retailers. Morgan Stanley said the 澳洲幸运5官方开奖结果体彩网:ecommerce strength was a surprise and should get better next month as July’s report will include last week’s 澳洲幸运5官方开奖结果体彩网:record-setting Prime Day sales.

“We'd say the retail sales report was a mixed bag in June, but consumers are getting more of their goods in boxes than bags these days,” Wells Fargo economists Tim Quinlan and Shannon Seery wrote in their analysis.

Car Sales Slow Down, While Furniture, Electronic🤪s S𒁏ales Jump

Motor vehicle sales mirrored overall retail, increasing 0.3% over May, a step back from the 1.5% month-over-month increase that last month’s data showed. Auto sales showed a more significant 5.3% increase over June 2022, when supply chain and inventory issues slowed sales.

Furniture sales represented one of the best performing retail sectors, showing a 1.4% jump in June from May, while electronics sales were up 1.1% and clothing retail increased 0.6%. Sales at restaurants and bars increased 0.1% over May but were 8.4% better than last June when inflation was surging to more than 9%.

Some retail sectors suffered in June✅, with gas station sales dropping 1.4% from May, building materꦿials falling 1.2% and sporting goods slipping 1%.

While sales weren’t as big as expected, the report also revised the May data to show that retail sales were 0.5% higher than the month prior, up from the 0.3% that was origiওnally reported last month.

The data also underscores the findings of the Michigan Consumer Sentiment Index, which came in higher than expected last week, with 澳洲幸运5官方开奖结果体彩网:optimism at a 22-week high. But ⭕that surge🐽 in optimism may not last, as analysts said strength in retail spending may be slowing down soon. 

“More broadly, further weakness in retail sales through the end of the year is expected as availability of credit weighs on economic activity and the labor market,” wrote Morgan Stanley Chief U.S. Economist Ellen Zentner and her team in a note Tuesday.