Consumers are not letting inflation deter their spending this summer.
U.S. retail sales in June, excluding auto and gas, remained largely unchanged, indicating that shoppers are regaining their financial stability as the second quarter approaches.
The U.S. Census Bureau reported in its monthly release on Tuesday that revised sales for May were 0.3% higher than initially estimated. This suggests consumers are spending more on discretionary goods as the Federal Reserve sees signs of cooling inflation.
The report highlighted that consumers are spending significantly more on general merchandise, including nonstore retailers (online shopping), as well as food services and drinking establishments (grocery stores, fast food outlets, and liquor stores).
Despite recent concerns about the retail sector’s performance due to persistent inflation and dwindling pandemic savings, Amazon’s Prime Day event may provide insight into the financial health of American consumers.
Amazon’s Prime Day event is scheduled for today (Jul. 16) and tomorrow (Jul. 17). According to Adobe, the event is expected to be one of the biggest online spending days of the year, with projected online sales of $14 billion.
With steep discounts, buy-now-pay-later options, and back-to-school shopping underway, consumers may soon indicate which areas of the retail sector are performing best.