U.S. shoppers boosted retail spending in June as the economy more broadly reopened and auto dealers navigated supply disruptions.
Retail sales—a measure of purchases at stores, at restaurants and online—rose 0.6% last month compared with May, the Commerce Department reported Friday.
Auto sales, which have shown signs of slowing amid supply-chain disruptions that have limited the number of vehicles for sale, weighed on overall retail sales in June. Excluding autos—a sometimes volatile category of products—sales rose 1.3% in the same period. Auto sales, meanwhile, fell by 2%.
Retail spending had slowed in late spring after surging earlier in the year from the impact of federal coronavirus aid to households. June’s increase marks a pickup in consumer spending.
Consumers in June spent more on products and services associated with the resumption of outside activities as governments ended many remaining Covid-19 restrictions. Sales rose strongly at restaurants and bars and clothing and accessories stores. Meanwhile, sales fell in categories that benefited from strong demand earlier in the pandemic as Americans stayed at home. Sales at furniture, sporting goods and building materials stores fell.
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