Retail Sales stayed flat in June, though this was better than the outright decline that had been expected. Sales in May were also revised upward from the originally reported 0.1% gain to a 0.3% gain when compared to April.
What’s the bottom line? While this report was better than estimates, there has been growing evidence that consumers are spending more cautiously in the face of rising unemployment and a slowing labor market. The Fed will be closely watching future Retail Sales reports, as the strength of our economy will impact their monetary policy decisions this year.