June Reports Weak Retail Sales

June retail sales – excluding autos, gasoline and restaurants – decreased 0.2 percent, seasonally adjusted month-to-month, and increased 3.1 percent unadjusted year-over-year, according to today’s retail sales report announced by the U.S. Dept. of Commerce. The numbers fell short of expectations, according to the National Retail Federation (Washington, D.C.).

Economists are still optimistic: “While consumer spending continues to be erratic and varied, going forward, I expect to see improvements in retail sales, supported mostly by the U.S.’s healthy labor market, improving housing markets and easier access to consumer credit,” said NRF Chief Economist Jack Kleinhenz. “There’s no reason to believe this is a continuing problem.”

While the cause of the disappointing sales figures is largely unknown, the weaker-than-expected results “may also reflect the deflationary environment we’re seeing within retail,” says Kleinhenz.

By category, sales in clothing and accessories stores decreased 1.5 percent month-to-month and increased 2.5 percent unadjusted; sporting goods stores sales decreased 0.1 percent, seasonally adjusted from the previous month, but increased 8.9 percent, unadjusted year-over-year; and non-store sales decreased 0.4 percent, seasonally adjusted from the previous month, an increase of 6.9 percent over the previous year, reports the NRF.