Retail

U.S. retail sales underperformed economists' forecast for June, S&P Global Market Intelligence reported. Retail and food service sales grew 0.2% month over month in June, adding to a 0.3% increase in May, according to U.S. Census Bureau data. On the heels of stronger-than-expected results in May, economists had anticipated June spending to grow by 0.5%. U.S. retail sales continued to rise amid cooling inflation and expectations for additional interest rate hikes from the Federal Reserve. The advance estimate for U.S. retail and food services sales totaled $689.50 billion in June, up from a revised $688.16 billion in May. June sales increased by 1.5% on an annual basis. Nonstore retailers registered one of the largest monthly increases among major retail categories, with a 1.9% growth in sales for June. Furniture and home furnishing stores and electronics and appliance stores also saw increased sales, which were up 1.4% and 1.1% from May, respectively. On an annual basis, nonstore retailers also booked the most sales growth, with a 9.4% increase, while health and personal care stores expanded their sales by 6.3%. Gasoline stations logged the largest monthly decline in sales at 1.4% and the biggest annual drop at 22.7%. The decrease weighed on the monthly total.