(Reuters) – No denying May’s $73 billion rebound in U.S. retail sales was an eye-popper and is the latest fodder to fuel the red-hot “V” vs “U” debate about what kind of recovery to expect from the COVID-19 recession.
FILE PHOTO: A shopkeeper hangs beads in his retail store as the phase one reopening of New York City continues during the outbreak of the coronavirus disease (COVID-19) in the Brooklyn borough of New York City, New York, U.S. June 9, 2020. REUTERS/Shannon Stapleton
Even Federal Reserve Chair Jerome Powell, who has taken pains lately to caution everyone that this is likely to be a fitful and for many a painful recovery, called Tuesday’s retail sales report from the Commerce Department an encouraging sign.
But, to be clear, while the rebound was strong overall, sales remain 8% below where they were in February, and many corners of retail are miles shy of where they were just three months ago when coast-to-coast stay-at-home orders brought many businesses to a full standstill.
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