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Consumers aren’t letting pesky inflation keep them from spending this summer.
U.S. retail sales in June, excluding auto and gas, were largely unchanged, highlighting that shoppers are regaining their financial footing ahead of a second quarter.
The U.S. Census Bureau said in its monthly report published on Tuesday that revised sales for the month of May were 0.3% higher than previous estimates, a sign that as the Federal Reserve gains confidence that inflation is cooling, consumers are spending more on discretionary goods.
Notably, the report details that consumers are indeed spending a lot more money on general merchandise, which includes things like nonstore retailers (online shopping), as well as food services and drinking spots (your local grocery, fast food joint, and liquor store).
While there have been concerns about the retail sector’s performance in recent months, largely due to pesky inflation and pandemic savings drying up, Amazon’s Prime Day event could provide some insight into the financial standing of American consumers.
The e-commerce giant’s Prime Day event is slated to take place today (Jul. 16) through tomorrow (Jul. 17). According to Adobe, the Amazon is expected to record one of the biggest online spending days of the year, on top of a projected $14 billion in online sales.
With steep discounts, buy now pay later options, and back-to-school shopping in full swing, consumers may soon reveal where the retail sector’s best performing division lie.