US retail sales rise modestly as consumers spend less on gas
The value of retail purchases rose 0.2% in June after a revised 1% advance in May
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[WASHINGTON] US retail sales rose modestly in June, dragged down by a drop in gas-station receipts that masked strong gains at some merchants.
The value of retail purchases rose 0.2 per cent in June after a revised 1 per cent advance in May, Census Bureau data showed on Thursday (Jul 16). The figures are not adjusted for inflation. Outside of petrol stations, sales increased 0.7 per cent.
Seven of 13 retail categories posted gains. Petrol-station receipts fell 5.3 per cent, the sharpest decline since 2022, as average national pump prices dropped roughly 50 cents a gallon in June. Receipts at nonstore retailers jumped 1.9 per cent, the biggest increase in nearly a year, likely boosted by Amazon.com’s Prime Day event.
Other discretionary categories, such as sporting goods and hobby stores as well as electronic and appliance stores, also rose. Outlays at motor vehicle and parts dealers climbed by the most since July 2025. Spending at restaurants and bars, the only service-sector category in the retail report, edged up.
The report signals continued resilience in consumer spending heading into the summer months. Cheaper gas offered households some breathing room for discretionary purchases last month, while sales promotions across major retailers and the FIFA World Cup may have also lifted sales.
Bank of America card data showed spending picked up steam across income groups in June, with lower-income households in particular benefiting from reduced prices at the pump. And online spending across all retailers was up during Amazon’s Prime Day sale compared with last year’s event, according to Adobe Inc.
Looking ahead, it’s unclear if the respite in gas prices – and inflation more broadly – will prove short-lived. The US and Iran have renewed attacks on one another, driving up oil prices and once again disrupting shipping through the Strait of Hormuz.
The retail sales report showed so-called control-group sales rose 0.5 per cent – which feed into the government’s calculation of goods spending for gross domestic product. The measure excludes food services, auto dealers, building materials stores and gasoline stations.
Separate data out Thursday showed applications for unemployment benefits fell last week to 208,000, the lowest level since May. BLOOMBERG
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