June 2018 Retail Sales

America’s economy is pushing forward. Consumers continued leading output according to the Census Bureau’s June 2018 report on Retail Sales.  Following an upwardly revised uptick of 1.3 percent (originally 0.8 percent), this important indicator gained 0.5 percent to end the first half of this year.  Compared to June of 2017, retail sales look impressive, climbing 6.6 percent. 

Some of the most discretionary categories looked strong in June.  Americans’ love affair with automobiles is hardly waning.  Motor vehicle & parts dealers experienced a 0.9 percent climb in receipts which is on the heels of May’s 0.8 percent gain.  Additionally, spending at food services & drinking places (Atlas’ favorite line in this report) climbed 1.5 percent, growing further after a 2.6 percent jump in May; in the past year, this portion of the economy has grown 8.0 percent.

Other areas signaled strength as well.  Spending at health and personal care stores rose 2.2 percent.  Revenues at gasoline stations moved up 1.0 percent.  Furniture and home furnishing firms added 0.6 percent versus a month earlier.  Nonstore retailers continued growing, tacking on an impressive 1.3 percent.  However, it wasn’t all good news.

A few categories struggled in June.  Clothing stores shed 2.5 percent in the period.  Sales at sporting goods and other hobby-related retailers dropped 3.2 percent.  Finally, department stores experienced a 1.8 percent decline in revenues. 

Generally speaking, retail sales are strong.  Headline growth suggests a comfortable consumer base is leading the way.  Drilling deeper into the details, it looks like an economy continuing to transition.  Spending on wares (automobiles being the exception) that have tended to be sold at brick and mortar locations are not moving along quite as quickly as services (food and drinks away from home) and goods delivered from nonstore retailers; America’s growth continues, that’s the primary takeaway from this indicator.