Ellen Zentner suggests the US economy shows ongoing consumer resilience despite mixed retail spending reports.
Retail sales in June rose 0.2%, according to data from the Commerce Department, indicating consumer spending remains relatively healthy. This figure contrasts with the 1% increase seen in May. While the World Cup and online sales boosted spending in certain sectors, the overall picture shows underlying consumer demand continuing along. A measure of spending excluding volatile categories like gasoline and building materials climbed 0.5% in June, which was slightly above expectations. Economists point to the resilience of American shoppers, noting that spending was solid across most categories. Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, noted that the data underscores the ongoing resilience of the US economy despite inflationary challenges. However, the report also highlighted a divergence, showing low-income households feeling price hikes more acutely than higher-income groups. This mixed data suggests that while the US economy maintains underlying strength, factors like persistent inflation and global instability could pose headwinds for consumers in the coming months.