US retail sales increased more than expected in June, but the burgeoning economic recovery is threatened by a resurgence of new Covid-19 infections and high unemployment.
The trade department said on Thursday that retail sales increased by 7.5% last month. It was at the top of the 18.2% jump in May, which was the biggest gain since the government began tracking the series in 1992. Economists polled by Reuters had predicted retail sales by 5% in June.
Retail sales have recovered as companies resumed operations after being shut down in mid-March in an effort to curb the spread of coronavirus. But new cases of airways have exploded, especially in the densely populated southern and western part, forcing some authorities in these regions to either close businesses again or pause reopening.
The uncertainty caused by the spiral Covid-1