US retail sales increased modestly in June, suggesting consumer spending continued to expand despite elevated interest rates and lingering uncertainty surrounding energy prices. Advance estimates from the Census Bureau showed retail and food services sales rose 0.2% mom to USD 768.6 billion, matching market expectations. The gain followed an upward revision to May’s increase to 1.0% from 0.9%, indicating household spending entered the second quarter on a firmer footing than previously estimated.
The broader trend also remained solid. Retail sales were 6.7% higher than a year earlier, while total sales during the April-June period increased 6.4% from the same period in 2025. Although June’s monthly increase represented a moderation from May’s strong gain, it extended the run of positive consumer spending and suggested households continue to support economic growth despite tighter financial conditions.
Excluding motor vehicles and parts, sales slipped -0.2% mom, reflecting some moderation in discretionary purchases, while sales excluding gasoline stations rose 0.7%, indicating underlying consumer demand remained resilient even as fuel prices became more volatile.
Economic Data
| Indicator | Actual | Expected | Previous |
|---|---|---|---|
| Retail Sales MoM (Jun) | 0.2% | 0.2% | 1.0% |
| Retail Sales YoY (Jun) | 6.7% | — | — |
| Retail Sales (Apr-Jun) YoY | 6.4% | — | — |
| Retail Sales ex Autos MoM (Jun) | -0.2% | 0.0% | 1.0% |
| Retail Sales ex Gasoline MoM (Jun) | 0.7% | — | 0.9% |
Key Takeaways
- Headline retail sales rose 0.2% mom, matching expectations and extending consumer spending growth into June.
- May sales were revised higher to 1.0% from 0.9%, indicating stronger spending momentum entering the second quarter than previously estimated.
- Retail sales were 6.7% higher than a year earlier, while April-June sales increased 6.4% y/y, pointing to continued resilience in household demand.
- Sales excluding motor vehicles fell 0.2%, suggesting some moderation in discretionary spending after May’s strong gain.
- Sales excluding gasoline stations rose 0.7%, indicating underlying consumer demand remained healthy despite volatility in fuel prices.
