U.S. retail sales increased during the first six months of 2026, including in several categories that are important end markets for the plastics industry, said Perc Pineda, chief economist of the Plastics Industry Association (PLASTICS), in an analysis on PLASTICS’ blog.

The U.S. Census Bureau’s Advance Monthly Retail Trade report showed retail sales of $4.4 trillion in the first half of the year, a 5.1 percent increase from the same period in 2025. In June alone, seasonally adjusted retail sales reached $768.6 billion, up 6.7 percent year-over-year (YoY).

Sales at motor vehicle and parts dealers increased 5.7 percent YoY, and manufacturers have largely kept pace with that demand, Pineda wrote. The Federal Reserve’s Industrial Production Index for motor vehicles and parts manufacturing has increased YoY since April, rising 1.2 percent in June. In comparison, a 2.1 percent decline was recorded a year earlier, and 6.2 percent drop in November 2025.

Electronics and appliances also recorded strong performance, with combined retail sales increasing 8.6 percent YoY. Electronics demand is driven by adoption of artificial intelligence technologies, computers, data centers, networking equipment, consumer and vehicle electronics, which rely extensively on plastics for components, housings, wire insulation and connectors, Pineda said.

Despite a decline in new home sales, the appliance market was boosted by consumers purchasing replacements.

Among other sectors that use a range of plastic products or packaging, sales at sporting goods, hobby, musical instrument and bookstores increased 15.2 percent YoY in May. Nonstore retailers, led by e-commerce, recorded a 14.2 percent increase, while miscellaneous store retailers and department stores posted gains of 6.0 percent and 3.7 percent, respectively. Food services and drinking places recorded a 3.8 percent increase.

Markets consisting primarily of necessities showed stability. Food and beverage stores recorded a 1.0 percent increase in retail sales, and grocery stores rose 0.9 percent YoY in May. Health and personal care stores posted a 0.2 percent increase. For plastics manufacturers, this translates into steady demand for packaging, medical products and household goods.

“Overall, the first half of 2026 reinforced the resilience of consumer spending despite ongoing economic concerns. Growth across many of the retail sectors that are important to plastics—including motor vehicles, electronics, sporting goods, and e-commerce—provides a favorable backdrop for demand through much of the year,” Pineda wrote. “While spending on essential goods remains comparatively stable, the breadth of retail sales growth suggests that consumer demand continues to provide an important foundation for plastics manufacturing and the broader plastics value chain.”