US Retail Sales Soar In June Led By Clothing Demand

Following a disappointing contraction in Chinese retail sales overnight, US Retail Sales growth in June was expected to slow from its massive rebound spike in May and it did but still notably beat expectations (rising 7.5% MoM vs +5.0% MoM exp).

Source: Bloomberg

Everything was higher in retail sales with a 105% MoM spike in Clothing, except:

• Building materials and garden supplies -0.3%

• Food and beverage stores -1.2%

• Nonstore retailers -2.4%

This is the biggest drop in non-store retail sales (online) since Dec 2018’s collapse…

The “V” in Retail Sales is almost complete…

Source: Bloomberg

On a YoY basis, both the headline and GDP-driver Control Group are back into positive territory…

Source: Bloomberg

The big question remains however, what happens to US consumption when the CARES Act handouts stop in two weeks?