MNI DATA IMPACT: US June Retails Up 7.5% V 5.0% Forecast

By Brooke Migdon

     WASHINGTON (MNI) - U.S. retail sales surged for a second month in June,

rising by 7.5% as further state reopenings allowed businesses to resume

close-to-normal economic activity for the first time in months and to meet

pent-up demand, the Commerce Department said Thursday.

     The increase shattered market expectations for a 5.0% gain and posted the

largest single-month percent increase in more than two decades outside of May's

upwardly revised 18.2% gain.

     Gas station sales rose by 15.3% in June, the largest percent increase on

record. Analysts interviewed by MNI said June was the best month for gasoline

demand since March, though recent Covid-19 spikes in large gasoline-consuming

states like Texas, Florida and California could drive down sales next month as

consumers re-enter lockdowns. Sales excluding gasoline sales were up 7.0%.

     Vehicle sales increased by 8.2% in June following an upwardly revised 48.7%

gain in May. Sales excluding motor vehicles were up 7.3% and sales excluding

motor vehicles and gasoline were up 6.7%. 

     Clothing and clothing accessory store sales spiked by 105.1% in June

following an unprecedented 176.7% increase in May. Many apparel retailers were

still unable to open their doors in May, particularly in states hardest-hit by

rapidly spreading infections in the early days of the Covid-19 pandemic, and

were only able to reopen for the first time in June.

     Other notable increases came from electronics and appliance (+37.4%),

furniture and home furnishing (+32.5%), and sporting goods store sales (+26.5%).

Sales at food services and drinking places also increased markedly, rising by

20.0% in June.

     Meanwhile, grocery store sales dropped for the first time since April,

falling by 1.6% following a 1.2% increase in May. Other losses came from food

and beverage (-1.6%) and building material and gardening equipment (-0.3%) store

sales. Non-store retailers, referring to digital stores and mail-order

purchases, fell for the first time since December, declining sharply by 2.4%

following a 7.2% increase in May.

--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com

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