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        <title><![CDATA[Retail sales climb 7.5 percent in June with coronavirus spike looming]]></title>
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            <media:title type="html">Retail sales climb 7.5 percent in June with coronavirus spike looming</media:title>
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        <content:encoded><![CDATA[<p>US retailers continued their swift recovery from the coronavirus crisis last month — but a recent <strong>surge in infections</strong> could sicken merchants once again.</p><p>Retail and food service sales climbed 7.5 percent in June, to $524.3 billion, beating economists&#8217; expectations for a 5 percent gain on the heels of May&#8217;s <strong>record 18.2 percent surge</strong>, the US Census Bureau said Thursday.</p><p>But the stats don&#8217;t reflect how the coronavirus has overwhelmed many parts of the country, forcing some reopened businesses to close again and adding to consumers&#8217; fears about catching the deadly bug.</p><p>&#8220;The road ahead for the consumer looks a little foggy and uncertain to say the least,&#8221; said Chris Rupkey, chief financial economist at MUFG Union Bank. &#8220;July spending faces the headwinds of states closing back down due to the second wave of the coronavirus.&#8221;</p><p>The seasonally adjusted figures nevertheless suggested consumers were chomping at the bit to go shopping as virus-related lockdowns eased.</p><p><span >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.</span></p><p>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.</p><p>Conversely, sales slipped 2.4 percent, to $82.8 billion, for internet retailers and other &#8220;nonstore&#8221; merchants that consumers had flocked to while shut in their homes, according to the data.</p><p>&#8220;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,&#8221; said Marwan Forzley, CEO of the payments-processing firm Veem.</p><p>&#8220;Spending now starts online and is complemented offline as opposed to the pre-COVID mindset of starting the buying process offline first,&#8221; he added.</p><p>While last month&#8217;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.</p><p>&#8220;Consumer spending can&#8217;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,&#8221; he said.</p><p><em>With Post wires</em></p>]]></content:encoded>
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