The US Commerce Department reported that June retail sales rose 0.2% from the previous month, slowing from a 1.0% gain in May and marking the lowest level since January. Falling gasoline prices dragged the headline index down by 0.42 percentage points, while auto sales lifted it by 0.35 percentage points. Excluding volatile autos, retail sales fell 0.2% month-on-month, the first decline in nearly a year since last May. The control group, which excludes food services, autos, building materials, and gasoline stations and is used in calculating GDP, edged up 0.5% month-on-month, the smallest gain since January. However, second-quarter control group sales accelerated to an annualized 9.2% from 5.9% in the prior quarter. Discretionary spending was supported by travel demand tied to the World Cup and Amazon Prime Day. Meanwhile, the Labor Department reported that initial jobless claims last week fell to 208,000, the lowest since early May, suggesting that a resilient labor market continues to underpin consumption.
Amazon.com IncAmazon Prime Day supported discretionary spending, boosting retail sales.