US consumer retail spending up 9.5% YoY in June: Mastercard

Excluding auto and gas, in-store spending is up 11.7 per cent YOY in June, and while e-commerce grew at a slower pace in the same month (1.1 per cent YOY), sales for e-commerce remain roughly double June 2019 levels. Nominal spending growth is down slightly compared to May, though it remains consistent with growth levels seen earlier in 2022.

As inflation persists, consumers are paying more for essentials. Meanwhile, discretionary spending continued to drive growth across the fashion-forward sectors in June, including apparel 13.1 per cent YOY/ 27.5 per cent year over 3 years (YO3Y), luxury 4 per cent/ 54 per cent YO3Y and department stores 8.6 per cent YOY/ 21.4 per cent YO3Y, as per Mastercard SpendingPulse.

“Sector by sector, we’re seeing a varied picture of how inflation is impacting essential vs discretionary consumer spending,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “One notable highlight is that travel sectors such as airlines and lodging continue to show signs of strong demand.”

ALCHEMPro News Desk (KD)