U.S. retail sales in June increase 6.6% year-over-year, leading to the continued rise in interest rates by the Federal Reserve for 2018

Boosted by increased purchases primarily of automobiles, retail sales during June in the United States rose steadily, affirming expectations for strong economic growth in the second quarter. The Commerce Department noted that retail sales increased 0.5% from May to June, which exceeded economist forecasts for the month. The 0.5% increase related mainly to retail sales of automobiles, gasoline, building materials and food services. Excluding the four previously mentioned environments, retail sales growth remained at a consistent 0.8%, as seen in the prior month.

These retail sales correspond closely with the consumer spending component of GDP, which accounts for two-thirds of the United States’ economic activity. Consumer spending has increased due to a variety of reasons; however, it seems that one of the main reasons behind the increased spending is the recent tax cuts seen in the United States.

The Federal Reserve has already raised interest rates twice in the current year, and due to the economy’s strong performance coupled with tightening labor markets (the unemployment rate was 4% in June) and firming inflation, the Fed is likely to continue to increase interest rates. The Federal Reserve has indicated that two more interest rate hikes are likely by the end of 2018.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2023 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
ESG in Retail – A Movement Towards Sustainability
Protect Your Retail Business: 3 Common Cyber Attack Methods to Watch Out for in 2023
Convenience Stores Should Start to Adapt to a Less Fuel Dependent Future
Audit, Retail BY Jack Steve
Current E-commerce and Brick-and-Mortar Trends
Post-Pandemic Fraud Landscape
What is the FICA Tip Credit and How Can Employers Take Advantage of It?
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×