Retail Sales in The United States are Surging

The government reported Friday that retail sales in the United States increased by 1% in June, following a pause in May. The increases were widespread, and sales were still up 0.7 percent after accounting for gasoline, according to Commerce Department data.

The report showed that despite the fastest inflation in more than four decades, Americans were still eating out and buying furniture and cars. This presents a challenge for the Federal Reserve, which had hoped to see signs that its aggressive interest rate hikes were starting to cool the economy and bring down prices.

Total sales fell 0.1 percent in May but rebounded strongly last month. According to the report, record gas prices at the pump in June were a major factor, boosting sales by 3.6 percent, following a 49.1 percent increase from June 2021.

Auto sales increased by 0.9 percent in June, following a 3.4 percent drop in May, while sales at furniture stores and restaurants increased by one percent or more, and online sales increased by 2.2 percent. Clothing, building, and gardening stores were among the few categories that experienced declines, according to the data.