On Friday, the US Commerce Department data had unveiled that US retail sales rose unexpectedly in June as a robust reopening of US economy kept domestic demands on cloud nine amid a swift shift in spending back to services from goods, bolstering analysts’ view that the US economy's growth would accelerate over second quarter of the year.
Nevertheless, a stronger-than-anticipated bounce back in US retail sales in June came forth despite a plunge in the sales of motor vehicles for a second straight month in a row amid a steep shortage of semiconductors, while a higher auto prices stemming from supply restrains had also kept potential buyers at bay.
However, latest uprising in US retail sales seemed to have accompanied a significant uptick in products' prices amid a sweeping shortage of raw materials alongside a mass-scale supply chain disruption caused by the pandemic.
US retail sales rise 0.6% in June, May data revised lower
According to US Commerce Department data released earlier in the day, US retail sales soared 0.6 per cent in June, while data for May was revised lower to 1.7 per cent instead of a decline of 1.3 per cent.
However, on a year-on-year basis, US retail sales have been up by 18 per cent so far and chartering 18 per cent above their pre-pandemic level, cementing ways for a solid economic recovery. Meanwhile, addressing to the underlying strength of the US economy what had been illustrated in latest US retail sales data, a chief economist at FHN Financial in New York, Chris Low, said, “Growing pains from reopening are on the supply side.
Inflation reports earlier this week confirm firms are still struggling to keep up with this demand, but another month of high retail spending should give companies confidence that consumer demand is not slowing down anytime soon”.