-Janet Yellen, Fed Chair
Retail sale in the US unexpectedly declined in June, questioning strength of the rebound in consumer spending during the second quarter. Sales at retailers and restaurants fell 0.3% from May to a seasonally adjusted $442 billion in June, according to the Commerce Department. Economists, however, had expected a 0.2% gain. Retail sales in May were revised downwards to show a 1.0% growth in the reported month, compared with a 1.2% gain estimated earlier. The fall last month appeared to be broad-based, with sales declining across several categories, including furniture, clothing stores, auto dealers, building materials and garden suppliers. Meanwhile, retail sales, excluding volatile automobiles, gasoline, building materials and food services, slipped 0.1%, whereas economists had predicted a 0.4% rise. Most analysts are forecasting strong consumer spending throughout the second half of the year. Consumer spending makes up more than two-thirds of US economic output. Coming on heels of June's disappointing employment data and steep drop in small business confidence, the weak retail sales data suggests the economy might have lost some steam at the end of the second quarter, having struggled at the beginning of the year.
Another report showed the cost of goods bought abroad declined in June, restrained by automobiles. The import-price index decreased 0.1% last month after rising 1.2% in May, according to Labor Department figures.
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