Retail Sales Rise 0.5% in June

Retail sales in the United States rose 0.5% in June to $310.4 billion, the best showing in three months, following no change in May, the Commerce Department reported Tuesday.

Excluding automobiles, retail sales rose 0.7% after a 0.1% gain the month before. Purchases of building materials and furniture led the increase.

Almost all trucking operations depend on the health of retail sales because such sales involve nearly every type of cargo. Consumer spending accounts for two-thirds of all economic activity.

Economists had forecast a 0.4% rise in retail sales following a 0.1% gain initially reported for May, Reuters reported. Sales excluding automobiles were expected to rise 0.3%.

Bloomberg News attributed the increase in spending to a significant rise in the Dow Jones Industrial Average since a March low, discounted merchandise and low borrowing costs.

Sales of building supplies rose 2.6% percent in June and home furnishings purchases increased 0.5%.

Purchases at sporting goods, hobby, book and music outlets jumped 3%, the biggest increase since February 2001, which likely reflected the release of the latest Harry Potter book, Bloomberg noted.

Receipts at gasoline service stations rose 1.3% last month following a 4.2% drop in May. Excluding gasoline and auto purchases, retail sales increased 0.7% in June after a 0.6% May rise.

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