Consumer spending and retail sales ended the second quarter on a soft note, indicating that economic growth and acceleration has weakened slightly according to the National Retail Federation.
The NRF reports that June retail sales (excluding automobiles, gas stations and restaurants) increased 0.6 percent seasonally adjusted from May and increased 3.0 percent unadjusted year-over-year.
June retail sales released by the U.S. Department of Commerce and U.S. Census Bureau, showed that total retail and food services sales (which include non-general merchandise categories such as automobiles, gasoline stations, and restaurants) increased 0.4 percent seasonally adjusted month-to-month and increased 5.7 percent adjusted year-over-year.
“The consumer economy is improving, but growth rates and retail sales will remain reserved for the foreseeable future,” says Jack Kleinhenz, chief economist, NRF. “U.S. households have adjusted their spending to a slow-growth economy. With employment and consumer confidence improving, we expect that the second half will be better than the first.”