Washington —
Spending at US retailers last month was weaker than expected, despite the World Cup drawing tourists from around the world and online sales events.
Retail sales rose 0.2% in June from the prior month, the Commerce Department said Thursday, down sharply from May’s revised 1% increase. That was lower than expectations of a 0.3% increase, according to a poll of economists by data firm FactSet. Retail sales are adjusted for seasonal swings but not inflation.
Consumer spending, which accounts for about two-thirds of the US economy, has held up this year, despite higher inflation and unusually weak consumer sentiment. That’s partly due to layoffs and a still-solid labor market, though low-income households are feeling the pain of price hikes and mounting debt more so than their high-income counterparts, who have benefited from a resilient stock market. Economists refer to that divergence as the K-shaped economy.
The World Cup and Amazon’s Prime Day sale helped boost spending last month, according to economists, though lower gas prices weighed on the government’s retail figures, since they’re not adjusted for inflation.
