S retail sales grew 1% in June, figures released by the US Commerce Department show, as pressure mounts on the Federal Reserve to deliver a bigger interest rate rise.
The growth was led by increased sales in petrol, furniture and e-commerce and follows a 0.1% drop in retail sales in May.
Car sales went up 0.8%, while restaurant revenues grew 1%. Grocery sales were up 0.6%, but this was more likely a reflection of higher prices at the supermarket than increased consumer demand.
The figures have prompted some traders to bet on a 100 basis point interest rate rise by the Fed when it meets later this month. A 75 point raise remains the consensus prediction.
It comes after US inflation data soared past analyst expectations to hit 9.1% in June according to figures released by the US department of Labor Statistics earlier this week.
Gasoline, shelter and food were among the largest contributors to the rise, which marked the highest annual gain since November 1981, and the highest monthly gain since 2005.
Charlie Bilello, founder and CEO of investment firm Compound Capital Advisors, tweeted: “In nominal terms, US Retail Sales are still booming, hitting another all-time high in June with an increase of 7.7% over the last year.
“But after adjusting for inflation, the story changes. Real Retail Sales peaked in April 2021 and are down 1.2% [year-on-year],
Credit: www.standard.co.uk /