America saw a decline in unemployment claims and decent jobs report in May.
The Commerce Department revealed another sign the economy is recovering from the Wuhan coronavirus pandemic. Retail sales hit a record of 17.7% in May.
The economy has slowly reopened and people are sick of being stuck inside their homes:
Costco Wholesale Corp. ’s comparable sales, those from stores or digital channels operating at least 12 months, rose 9.7% in May. Sales of discretionary and nonfood items such as bedding, appliances and sporting goods “rebounded in May compared to recent months,” while food sales stayed strong, a Costco executive said on a prerecorded call to discuss monthly sales. Walmart Inc. and Target Corp. executives also said last month that spending picked up at the end of their most recent quarters in late April.Still, economists project it could take years for the U.S. economy to recover, and recent increases in coronavirus cases in more than a dozen states are casting a cloud over reopening efforts.“We still have so far to go,” said André Kurmann, associate professor of economics at Drexel University. “We are still so far below the prepandemic employment levels.”“Stores can reopen to some extent, but how many people are going to come back is the big question,” he added.
From Fox Business:
The changes have in many cases intensified the financial strain on traditional physical stores and boosted online purchases. Sales at non-store retailers, which include internet companies like Amazon and eBay, rose 9% in May after posting growth of 9.5% in April. Clothiers achieved a stunning 188% monthly gain, but that was not enough to offset a 63.4% drop over the past 12 months.Retail sales account for roughly half of all consumer spending, which fuels about 70% of total economic activity. The rest of consumer spending includes services, from cellphone and internet contracts to gym memberships and child care.
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