The latest U.S. economic data revealed by the Department of Commerce showed an increase in retail sales in June, signaling that continued growth could make way for more interest rate hikes to come before the end of 2018.
During the month of June, retails sales grew 0.5%, which, when paired with the 1.3% growth during the month of May, supports the continued boost in spending. In the past 12 months, retails sales have increased by 6.6%, touching slightly above the long-run average since 1980.
Furthermore, retail sales have climbed steadily the last five years, almost touching the 2% mark in the tail end of 2017.
Part the increase in June can be attributed to rising gas prices–a 1% increase in June and up 21.6% in the past year. Furthermore, continued growth came as a result of a 0.4% increase in auto sales during the month of June following a 1.4% increase in May.
Related: Overheating Ahead: The Economy by Itself is Heading for Higher Inflation