Sales growth is evident across multiple sectors with the strongest sales growth observed in health & personal care items, general merchandise stores, clothing stores and non-store retailers. Including automobile, retail sales increased 0.2 percent.
June increase in retail sales comes after an unworthy revised 0.5 percent increase in May mirroring the trend in the Money Anxiety Index showing continued improvement in the level of consumer financial anxiety from 74.0 in April to 71.3 in June.
The link between the level of money anxiety and retail sales is very storing and significant. When consumers have a lower level of money anxiety they spend more thus increasing retail sales.
Employment creation is a significant factor in decreasing the level of money anxiety. In the second quarter of this year, the economy added a total of 793,000 non-farm jobs; 288,000 in April, 217,000 in May and 288,000 in June. When job creation increases, consumers feel more secure in their current jobs, or are more encouraged about the prospects of finding a job, which leads to an increase in spending and economic growth.
The impact of money anxiety on consumer financial behavior is demonstrated in the book Money Anxiety (www.moneyanxiety.com). Money Anxiety is available in paperback and eBook formats in all major online booksellers such as Amazon, Barnes and Noble, Google Play and iTunes store.