US – Retail Industry Performed Better in June

The US retail sales in June 2009 registered the biggest surge in the last five months on account of revival in the auto sector and increase in prices of gasoline.

The growth in the US retail sales in June 2009 was recorded as the largest in the past five months, fueled by marginal revival in the badly performing auto sector as well as rising gasoline prices, reported Associated Press.

According to the US Commerce Department, the retail sales in the US surged 0.6% in June 2009, beating the expected 0.4% growth forecasted by the economists. Sales of automobiles and auto parts increased by 2.3% during the month, displaying the best performance since January 2009. However, sales excluding auto and auto parts surged 0.3%, which is a weaker increase as compared to the 0.5% rise of May 2009.
 
Sporting goods stores and appliance stores also noticed strong sales figure. This surge marked the second successive growth and thereby, boosted hopes that the economy may be on the threshold of a recovery.

Apart from this, it was noted that the consumer confidence dipped in June 2009, reversing the 3-month-long upward trend propelled by the fizzling stock market. Some of the biggest insecurities being faced by consumers at present are the declining growth in their income levels as well as the weak job market.

Although, several economists think that the country's economy is presently in its stabilizing process, after having witnessed a crash towards the end of 2008 and the starting three months of the current year. Many of them are projecting that in terms of GDP, the overall economy will start rebounding in the quarter starting July 2009.

According to a Research Analyst at RNCOS, "The gradually improving conditions are expected to bring back the much awaited growth in the US retail industry during the holiday period towards the end of the current year. Sometime around Christmas, consumers might find themselves in a relatively better position and might be feeling more secure about their jobs and incomes. But till then, retail market has to face certain ups and downs as consumers are more cautious regarding their spending in the current scenario."

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