Consumer spending remains a significant contributor to the US economy
Online sales increased by 1.9%
Retail sales excluding auto and gas showed unexpected resilience
Sales at home improvement stores rose by 1.4%
US retail sales increased by 0.8% in June
US retail sales showed unexpected resilience in June, with sales excluding auto and gas increasing by 0.8%, according to data released by the Commerce Department on Tuesday. This figure was higher than the predicted 0.2% increase and a reversal from May's revised 0.1% decline.
The retail sector's strong performance came despite a decrease in sales at gas stations due to lower gasoline prices, which fell by 3%. Additionally, the auto sector was affected by a cyberattack on CDK Global car dealerships and automotive parts sales, leading to a 2% decline in vehicle and auto parts sales.
Despite these challenges, retail spending remained robust in several other categories. Sales at home improvement stores rose by 1.4%, while online sales increased by a healthy 1.9%. The strength of online sales could persist into July due to Amazon's annual deal event known as Prime Day.
The latest retail sales data contradicts recent economic indicators that suggested American consumers were slowing their spending. With the strong performance in June, consumer spending remains a significant contributor to the US economy.
Retail sales were flat in June, defying a predicted decline of 0.3%
Sales excluding auto and gas increased by 0.8% in June
Control group sales increased by 0.9% in June, above estimates for a 0.2% increase
Accuracy
Consumer spending shows that the consumer is holding in there well, not falling off a cliff, and may not be spending at the same pace as before but is still growing
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains an appeal to authority fallacy when quoting Paul Ashworth and Robert Sockin. They are cited as experts in their field, but the author does not provide any evidence that their opinions are correct or that they have any special knowledge beyond what is already reported in the article.
"Although retail sales were unchanged in June, the strong 0.9% [month-over-month] rise in control group sales should ease concerns about the plight of the consumer in the wake of the renewed slump in sentiment,"
"And I think for the Fed, this will take some urgency off of easing rates, out of fears that the economy may be slowing down more sharply. So I think they're going to still signal at the July meeting a September cut is very likely, given progress on inflation."
Sales at home improvement stores were up 1.4% last month
Online sales were up a healthy 1.9% in June and could persist in July due to Amazon's annual deal event known as Prime Day
Accuracy
Retail sales were flat in June, defying a predicted decline of 0.3%
Retail sales make up a big chunk of overall spending and were better than projected in June
Sales at gas stations declined the most last month, dropping 3% from May
Excluding spending at gas stations and on cars, sales were up a solid 0.8% in June
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(90%)
The article contains some instances of appeals to authority and inflammatory rhetoric, but no formal or blatant logical fallacies were found. The author quotes several experts and reports on their opinions without committing any logical errors. The tone of the article is informative and neutral, with no clear bias towards any particular position.
]The latest inflation readings, coupled with signs of a slowing economy as reflected in the latest spending figures, help build a case for Fed officials to begin paring back interest rates.[
Fresh data showed American consumers aren’t tapping out quite yet despite a disappointing few months for retailers.
Sales at home improvement stores were also robust last month, rising 1.4%.
Accuracy
US retail spending has been mostly flat since the beginning of the year, holding steady in June.
Retail sales were flat in June.
Sales at gas stations declined the most last month, dropping 3% from May.
Excluding spending at gas stations and on cars, sales were up a solid 0.8% in June.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(90%)
The article contains a few informal fallacies and an example of inflammatory rhetoric. It uses a dichotomous depiction by presenting the options as either American consumers are tapping out or they aren't. This oversimplifies the situation and ignores the nuances of consumer behavior. The author also appeals to authority when citing economists and Federal Reserve officials, without critically examining their predictions or analyzing the data independently. Additionally, there is an example of inflammatory rhetoric in the phrase 'the latest inflation readings, coupled with signs of a slowing economy as reflected in the latest spending figures,' which suggests that inflation and a slowing economy are directly linked and causing negative consequences.
. . .Unemployment has crept up in recent months as evidence mounts that the American shopper is spending more cautiously nowadays.
The economic landscape has proven challenging for some consumers in a few ways. . .
Inflation has resumed a downward trend, but it’s still elevated; interest rates have been perched at a 23-year high for about a year now; savings accumulated during the pandemic have been exhausted by now, according to some measures; and job opportunities aren’t as ubiquitous as they were a few years ago.
There is plenty of evidence by now that the US economy is slowing, but it likely won’t fall off a cliff this year.
Fed officials and most economists aren’t expecting a recession this year, but it’s unclear whether unemployment will hold steady or continue to climb after it rose to a 4.1% rate in June, the highest since November 2021.
Gasoline prices declined and led to a 3% decrease in sales at gas stations
Auto sector was affected by a cyberattack causing a 2% decrease in sales for vehicles and auto parts
Accuracy
Excluding autos and gas, retail sales rose strongly by 0.8%
Deception
(80%)
The author provides context and analysis in the article, but there are instances of selective reporting and editorializing. The author states that 'stripping out autos and gas, American consumers spent at a healthy rate' which is selectively reporting data to present a positive spin on retail sales. Additionally, the author states 'Meanwhile, a cyber attack on auto dealers likely restrained purchasing activity: sales for vehicles and auto parts fell 2%.' This statement implies that the cyber attack was the sole cause of the decrease in vehicle and auto part sales without providing any evidence to support this claim.
The latest retail sales data muddles that narrative.
stripping out autos and gas, American consumers spent at a healthy rate
Meanwhile, a cyber attack on auto dealers likely restrained purchasing activity: sales for vehicles and auto parts fell 2%.
