#Retail sales climb 7.5 percent in June with coronavirus spike looming

US retailers continued their swift recovery from the coronavirus crisis last month — but a recent surge in infections could sicken merchants once again.

Retail and food service sales climbed 7.5 percent in June, to $524.3 billion, beating economists’ expectations for a 5 percent gain on the heels of May’s record 18.2 percent surge, the US Census Bureau said Thursday.

But the stats don’t reflect how the coronavirus has overwhelmed many parts of the country, forcing some reopened businesses to close again and adding to consumers’ fears about catching the deadly bug.

“The road ahead for the consumer looks a little foggy and uncertain to say the least,” said Chris Rupkey, chief financial economist at MUFG Union Bank. “July spending faces the headwinds of states closing back down due to the second wave of the coronavirus.”

The seasonally adjusted figures nevertheless suggested consumers were chomping at the bit to go shopping as virus-related lockdowns eased.

Sales at clothing and accessories stores, which took a beating in the spring, more than doubled to about $17.1 billion last month, while hard-hit restaurants and bars saw a 20 percent surge, to $47.4 billion, the data show.

Demand was also strong at furniture stores, where sales jumped 32.5 percent to $9.5 billion, and electronics and appliance outlets, which saw a 37.4 percent increase, to about $7 billion. Gasoline sales climbed 15 percent thanks in part to higher fuel prices.

Conversely, sales slipped 2.4 percent, to $82.8 billion, for internet retailers and other “nonstore” merchants that consumers had flocked to while shut in their homes, according to the data.

“This modest dip doesn’t come as a major surprise as we are living in very volatile times with heightened uncertainty, which is bound to make some consumers cautious when it comes to spending money,” said Marwan Forzley, CEO of the payments-processing firm Veem.

“Spending now starts online and is complemented offline as opposed to the pre-COVID mindset of starting the buying process offline first,” he added.

While last month’s total sales were only about 1.1 percent lower than in June 2019, the expiration of a $600 weekly boost to unemployment benefits that has aided jobless workers could dampen the recovery, according to Rupkey.

“Consumer spending can’t keep climbing for long when it is held back by the heavy weight of 32 million jobless workers without a dime in the world,” he said.

With Post wires