Consumers are not allowing inflation to hinder their spending this summer.
U.S. retail sales in June, excluding auto and gas, remained largely unchanged, suggesting that shoppers are regaining their financial stability ahead of the second quarter.
The U.S. Census Bureau reported on Tuesday that revised sales for May were 0.3% higher than previous estimates. This indicates that as the Federal Reserve gains confidence that inflation is cooling, consumers are spending more on discretionary goods.
Notably, the report indicates that consumers are spending significantly more on general merchandise, including nonstore retailers (online shopping), food services, and drinking establishments (local groceries, 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 could provide insights into the financial status of American consumers.
The e-commerce giant’s Prime Day event is set to take place on July 16 and 17. According to Adobe, Amazon is expected to record one of the biggest online spending events of the year, with projected sales of $14 billion.
With steep discounts, buy now pay later options, and back-to-school shopping in full swing, consumers may soon reveal which divisions of the retail sector are performing best.