Consumers Are Buying

If there is one takeaway from today's advanced retail sales report it is the consumer continues to buy. On a year over year basis total retail sales increased 6.6% as of the end of June. For the month, the actual increase was .5% and met consensus expectations. A large positive in the report was the .5% revision higher in May's .8% increase to a 1.3% increase. In Econoday's release covering the report, they note,

"What's striking is that autos were very strong in both June and May, up 0.9% and 0.8% respectively, with restaurants really showing unusual acceleration, up 1.5% and 2.6% in the two months. Gains here point to new confidence among consumers and are consistent with the strength underway in the labor market."

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As can be seen in the above chart, non-store retail sales, mainly e-commerce sales, continue to increase at a year over year 10% growth rate. This faster growth relative to the total results in non-store sales capturing a larger percentage of the overall retail sales number. For June non-store retail sales is now 11.2% of overall sales and does not appear to be showing signs of slowing.

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