Consumers are not letting persistent inflation curb their summer spending.
U.S. retail sales in June, excluding auto and gas, remained steady, suggesting that consumers are regaining their financial stability going into the second quarter.
The U.S. Census Bureau reported on Tuesday that May’s revised sales were 0.3% higher than previously estimated. This indicates that as the Federal Reserve grows more confident in cooling inflation, consumers are increasing their spending on discretionary goods.
The report highlights that consumer spending has significantly increased on general merchandise, such as nonstore retailers (online shopping), as well as food services and drinking places (local grocery stores, fast food restaurants, and liquor stores).
Concerns have persisted about the retail sector’s performance, driven by inflation and dwindling pandemic savings. However, Amazon’s Prime Day event might offer some insights into the financial health of American consumers.
The Prime Day event by the e-commerce giant is scheduled for today (July 16) and tomorrow (July 17). According to Adobe, it is expected to be one of the biggest online spending days of the year, with projected online sales reaching $14 billion.
With significant discounts, buy now pay later options, and back-to-school shopping in full swing, consumers’ spending patterns could soon reveal the best-performing divisions in the retail sector.