5 Retail Stocks To Take Center Stage As Sales Pop Up Again

Well, you simply can’t ignore the fact that concerns related to trade war have to an extent subdued business environment and impacted consumer confidence. Nevertheless, this did not deter people from buying motor vehicles or splurging in restaurants or purchasing a range of other goods. Americans continued their shopping spree supported by strengthening labor market, lower taxes and modest improvement in income.

U.S. retail sales rose again in the month of June, marking the fifth straight month of gains with May’s reading revising upward. Certainly, consumer spending — one of the pivotal factors driving the economy — is likely to remain strong in the months ahead. This is evident from the drop in the number of Americans claiming unemployment benefits that fell to a two-month low last week with jobless rate hovering near its 18-year low and the economy adding 213,000 jobs last month.

Its quite apparent, the economy remains well on track after a muted start to the year. These factors along with firming inflation allowed the Federal Reserve to raise the benchmark interest rate for the second time this year. The Fed has signaled a two more hikes before the end of this year. Evidently, the economic activity continues to gain pace with second-quarter GDP rate likely to come ahead of 4%, per industry experts.

Retail Sales Rise Again

The Commerce Department stated that U.S. retail and food services sales in June advanced 0.5% to $506.8 billion, following an upwardly revised reading of 1.3% gain in May. Notably, retail sales improved by 6.6% from June 2017.

The report suggests that sales at motor vehicles and parts dealers rose 0.9%, while at food services & drinking places the metric increased 1.5%. Meanwhile, receipts at gasoline stations rose 1%, while at furniture & home furnishing stores sales improved 0.6%.

Sales at building material dealers and health & personal care stores grew 0.8% and 2.2%, respectively. Sales at non-store retailers jumped 1.3% but surged 10.2% from the prior-year period.

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