Consumers are defying inflation and continuing to spend this summer.
U.S. retail sales in June, excluding auto and gas, remained largely unchanged, indicating that shoppers are regaining their financial footing ahead of the second quarter.
Prime Day: The first half of Amazon’s 48-hour sales event has resulted in the biggest U.S. e-commerce day so far in 2024.
According to the U.S. Census Bureau’s monthly report published on Tuesday, revised sales for May were 0.3% higher than previous estimates. This suggests that as the Federal Reserve becomes more confident that inflation is cooling, consumers are spending more on discretionary items.
Significantly, the report highlights an increase in consumer spending on general merchandise. This includes nonstore retailers (online shopping), as well as food services and drinking establishments such as local groceries, fast food outlets, and liquor stores.
Despite concerns about the retail sector’s performance in recent months, largely due to persistent inflation and the depletion of pandemic savings, Amazon’s Prime Day event offers some insight into the financial health of American consumers.
Prime Day, taking place today (July 16) through tomorrow (July 17), is expected to be one of the biggest online spending events of the year. According to Adobe, Amazon is projected to achieve $14 billion in online sales.
With significant discounts, buy now pay later options, and back-to-school shopping in full swing, consumers may soon reveal which sectors of retail are performing the best.