July 16 (UPI) — Retail sales were flat in June according to the latest report from the Commerce Department released Tuesday but still soundly beat Dow Jones projections that expected to see a decline.
The U.S. Census Bureau said sales reached a seasonally adjusted $704.3 billion in June, showing essentially no growth from the revised total in May while Wall Street predicted a decline of 0.4%.
The bureau said the June total, however, was up 2.3%. For the second quarter, April through June, sales were up 2.5% from the 2023 figures.
“Retail trade sales were down 0.1% from May 2024 but up 2% above last year,” the report said. “Nonstore retailers were up 8.9% from last year while food services and drinking places were up 4.4% from June 2023.”
Much like in other economic reports over the past month, sales at gasoline stations declined 3% in June, along with sales at auto dealerships and automotive parts. On the flip side, online sales saw a 1.9% increase, a month ahead of Amazon‘s traditional Prime Day, which is expected to boost online sales even more in July.
Excluding cars and gas stations, sales were up 0.8% in June, the report said.
The Dow jumped 500 points in early trading on the retail sales news, lifting the index 1.3%. The S&P improved 0.4% while the Nasdaq Composite appeared even during the morning.
“Consumers have become increasingly cautious with their spending as they feel the pinch from higher prices and borrowing costs, but the latest report shows no signs of consumer retrenchment,” Lydia Boussour, a senior economist at EY-Parthenon, said, according to CNN.