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US retail sales growth slows unexpectedly in June | US retail sales growth slows unexpectedly in June |
(35 minutes later) | |
US retail sales grew in June, but at a slower rate than was expected by many analysts. | US retail sales grew in June, but at a slower rate than was expected by many analysts. |
Sales were up by a seasonally-adjusted 0.4%, half the 0.8% rate expected by the markets. | Sales were up by a seasonally-adjusted 0.4%, half the 0.8% rate expected by the markets. |
Sales of building materials - often a volatile item - fell 2.2% in the month, according to the Commerce Department. | Sales of building materials - often a volatile item - fell 2.2% in the month, according to the Commerce Department. |
The sub-par performance added to expectations that the Federal Reserve will wean the US off economic stimulus more slowly than previously indicated. | The sub-par performance added to expectations that the Federal Reserve will wean the US off economic stimulus more slowly than previously indicated. |
Car sales - which can also vary greatly from month to month - jumped 2.1%, while furniture and household goods rose 2.4%. | |
Total retail sales in June were 27.5% up from their level at the bottom of the recession in mid-2009. | Total retail sales in June were 27.5% up from their level at the bottom of the recession in mid-2009. |
The figures come on top of weaker trade and manufacturing data, pointing to a softening in the US recovery. | The figures come on top of weaker trade and manufacturing data, pointing to a softening in the US recovery. |
"The disappointing rise in retail sales values in June increases the chances that GDP grew at an annualised rate of less than 1% in the second quarter," said Paul Dales, US economist at research firm Capital Economics. | |
"Even more worrying is that sales growth appears to be losing momentum heading for the third quarter." |
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