WASHINGTON — U.S. retail sales posted modest growth in June, suggesting consumer spending remained resilient despite persistent economic pressures, though the pace slowed from the previous month as lower gasoline prices weighed on overall receipts.
Advance estimates released by the U.S. Census Bureau on July 16 showed retail and food services sales rose 0.2% in June from May to a seasonally adjusted $768.6 billion. The May increase was revised higher to 1.0% from an earlier estimate of 0.9%. Sales were up 6.7% from a year earlier.
The modest monthly gain reflected weaker receipts at gasoline stations as fuel prices declined, offset in part by stronger spending on motor vehicles and online shopping. Excluding gasoline stations, retail sales increased 0.7%, indicating underlying consumer demand remained relatively firm despite higher borrowing costs and broader economic uncertainty.
Economists said the report pointed to continued household spending in the second quarter, supported by a stable labor market. Separate Labor Department data released the same day showed initial claims for unemployment benefits fell to a two-month low, reinforcing signs that employment conditions remained broadly healthy.
A closely watched measure known as control group sales, which excludes several volatile categories and feeds directly into calculations of gross domestic product, increased 0.5% in June after a stronger gain in May. Analysts said the data suggested consumer spending likely accelerated during the second quarter, supporting expectations for continued economic expansion.
Several retail categories recorded gains during the month. Sales at motor vehicle and parts dealers rose as manufacturers offered incentives, while nonstore retailers benefited from increased online purchases, including spending tied to early summer promotional events. Sporting goods retailers also reported stronger activity, while categories including clothing, furniture and some grocery sales were softer.
Despite the broadly positive report, economists cautioned that challenges remain for consumer spending in the months ahead. They cited the possibility of higher energy prices, slowing wage growth, low household savings and fading support from earlier tax refunds as factors that could limit future spending, particularly among lower-income households.
The retail sales figures are not adjusted for inflation, meaning changes in prices can influence the headline totals. The Census Bureau said the data remain subject to future revision as additional information becomes available.
