U.S. retail sales in June rose against expectations as demand for goods remained strong, boosting economic growth in the second quarter.
Source: United States Census Bureau.
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The sales increased 0.6% in June. Figures for May were revised downwards to depict sales declining 1.7% rather than declining 1.3% as initially reported.
The effective vaccinations against Covid-19, low interest rates, and huge fiscal stimulus are major contributors to the growing US retail sales.
Spending started shifting back to services including travel and entertainment. Retail sales were largely goods, with health, education, travel, and hotel accommodation among services in the consumer spending portion.
Total sales soared 18.0% compared to June 2020, and the sales are above the pre-pandemic figures.
The demand for products shifted to products such as electronics and motor vehicles during the Covid-19 pandemic as millions of Americans were working from home and took online classes.