span>span>Tuesday 18th July 2023/span>span> - 13:47 (BST)/span>/span>
Retail sales in the United States experienced a moderate increase of 0.2% during June, softening USD demand and improving wider market sentiment. This figure follows an upward revision of a 0.5% surge in May but failed to meet the 0.5% rise anticipated. The latest data reveals a mixed performance across various sectors, indicating a nuanced consumer landscape.
Among the segments that recorded gains in June were miscellaneous store retailers which saw a 2% rise, e-commerce (1.9%) and furniture (1.4%). Conversely, gasoline station sales plunging by 1.4% whilst building materials and garden equipment sales declined by 1.2%.
Core retail sales, which exclude automobiles, gasoline, building materials, and food services, witnessed a more substantial increase of 0.6%. This metric provides a clearer indication of consumer spending trends, as it filters out the impact of volatile sectors.
Despite the mixed performance of individual sectors, the overall retail sales data continues to suggest a resilient consumer spending environment. Moreover, the consumer price inflation rate fell to a two-year low in June, indicating a potential easing of cost pressures for consumers. However, it is important to bear in mind that retail sales figures are not adjusted for inflation.
US dollar demand fell following the news as risk appetite continues to flow back into the markets. At the time of writing, GBP/USD looks set to test $1.31 for the first time since April 2022 whilst EUR/USD is trading above 1.12 for the first time since February 2022.
