Despite inflationary pressures, consumers remain enthusiastic about spending this summer.
U.S. retail sales in June, excluding auto and gas, held steady, indicating that shoppers are finding their financial balance as the second quarter begins.
In a recent monthly report from the U.S. Census Bureau, revised sales figures for May were shown to be 0.3% higher than originally estimated. This adjustment reflects increased consumer spending on discretionary goods, as confidence grows that inflation is easing.
The report highlights that consumers are significantly increasing their expenditure on general merchandise. This category encompasses nonstore retailers (online shopping) and food services and drinking places, such as grocery stores, fast food restaurants, and liquor stores.
Concerns have persisted about the retail sector’s performance in recent months due to inflation and dwindling pandemic savings. However, Amazon’s Prime Day event might shed light on the financial strength of American consumers.
Scheduled for July 16 and 17, Amazon’s Prime Day is anticipated to be one of the year’s biggest online shopping events. Adobe projects that the e-commerce giant will record up to $14 billion in online sales during this period.
With significant discounts, buy now pay later options, and back-to-school shopping underway, consumer spending during Prime Day could reveal the retail sector’s top-performing divisions.