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Retail sales tops forecasts
Sales post best showing in three months in June, a sign that consumer spending may pick up.
July 15, 2003: 10:29 AM EDT

NEW YORK (CNN/Money) - Retail sales grew at the fastest pace in three months in June, the government reported Tuesday, a sign that consumers might be a little more willing to spend than previously thought.

The Commerce Department said retail sales rose 0.5 percent in June, up from a reading of unchanged in May, according to revised figures. Economists surveyed by Briefing.com were looking for a 0.4 percent rise for June. The June rise was the biggest since March.

Excluding autos, retail sales grew 0.7 percent, up from 0.1 percent in May. Analysts were looking for a 0.3 percent rise in that measure during June.

Consumers spent more money on building materials, furniture, clothing and sporting goods in June. Consumer spending is watched closely by policy-makers and economists since it fuels two-thirds of the nation's economy.

"This was an honest-to-goodness better-than-expected report," said Lara Rhame, economist with Brown Brothers Harriman. "There were no special factors in it that made it look artificially strong."

"Given that we had weakness both in April and May, retail sales were due to a bounce higher from the pent-up demand," she added. "The report may also indicate that consumer fatigue may not be that severe as we had previously thought."

Sales of building and garden supplies rose 2.6 percent versus May's 0.2 percent decline. Sales of clothing rose 1.3 percent in June, on top of a 1.6 percent gain.

At sporting goods, book, music and hobby stores, sales grew 3 percent in June, a turnaround from the 0.9 percent drop in May. Sales of furniture and home furnishings rose by 0.5 percent after a 1.2 percent advance the month before.

But there were some weak spots. Auto sales slipped 0.1 percent in June after a 0.2 percent decline in May, while electronics and home appliances sales dipped 0.1 percent in June, compared with a 1.7 percent increase the month before.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.