US retail sales grew 7.5% monthly in June, marking another month of growth and continuing their bounce back to normalcy after the pandemic-driven plunge earlier this spring.
But two key factors could make June’s gains in retail sales short-lived.
1. Coronavirus cases are surging again. As a result, some states and regions are walking back reopening.
2. Government aid is about to run dry. Retail’s recovery was likely aided by the CARES Act stimulus checks and the $600 weekly federal unemployment benefit.