US Consumption Remains Strong...Job Market Recovering

Retail Sales in June Up 0.6% from Previous Month

Jobless Claims Decline for Fifth Consecutive Week

Retail sales, a key indicator of consumption in the United States, rose by 0.6% in June, significantly surpassing market forecasts. This rebound from negative growth in May highlights a clear recovery in consumption. Furthermore, employment indicators have also exceeded market expectations, leading to analyses suggesting that the domestic US economy is beginning to pick up in earnest.

On the 17th, the US Census Bureau under the Department of Commerce announced that retail sales in June increased by 0.6% compared to the previous month. This figure is much higher than the 0.1% predicted by experts. Retail sales posted a mere 0.1% increase in April and declined by 0.9% in May, but returned to an upward trend in June. Excluding autos, retail sales also rose by 0.5%, surpassing the market forecast of 0.3%.

The job market also showed signs of recovery. For the week ending July 12, new jobless claims were recorded at 221,000, falling below the market expectation of 233,000. This marks a decrease from the previous week’s 228,000, continuing a five-week decline. It's the lowest level since mid-April. The four-week moving average also decreased to 229,500, the lowest since early May.

With improvements in both consumption and employment indicators, optimism about the US economy is reemerging. Bloomberg News reported, "Americans have remained pessimistic about the economy and household finances throughout this year, with concerns persisting over increased living costs due to tariffs. However, the recent recovery in consumer sentiment has provided the market with some relief." Reflecting this trend, there are also expectations for ongoing US dollar strength.

Reporter Hyein Lee hey@hankyung.com