Retail sales up a modest 0.2% in June amid economic uncertainty
Shoppers slowed their spending in June from May, but excluding business at the gas pump, shoppers showed resilience despite economic uncertainty as they bought cars and took advantage of summer sales events
ByANNE D’INNOCENZIO AP retail writer
July 16, 2026, 8:44 AM
NEW YORK –Shoppers slowed their spending in June from May, but excluding business at the gas pump, shoppers showed resilience despite ongoing economic uncertainty as they bought cars and took advantage of summer sales events
Retail sales rose 0.2% in June, after being up a revised 1% in May, according to the Commerce Department’s report released on Thursday
Outside of gas stations, retail sales rose a robust 0.7%, according to the report
The government figures aren’t adjusted for inflation so last month’s decline in gas prices pulled down the overall retail sales figure
Business at gas stations fell 5.3% last month. Meanwhile, sales at motor vehicle and parts dealers were up 1.9%, according to the report
Elsewhere, shoppers were selective in their buying, given the fading benefits of generous government tax benefits, which propelled spending earlier in the spring
Business at clothing and accessories stores as well as at miscellaneous retailers both slipped 0.3%, while sales at department stores rose 0.1%
Online sales rose 1.9%, fueled by spending surrounding Amazon’s Prime Day event, which was held from June 23 through June 26. Business at sporting goods, hobby, musical instrument and book stores was up 1.3%, likely helped by spending around the World Cup
The data offers only a snapshot of consumer spending and doesn’t include activities like travel and hotel stays. The lone services category – restaurants – registered a 0.1% increase
The report comes as U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, offering some relief to consumers, while underlying price pressures also slowed more than anticipated
Gas prices fell to $3.94 per gallon on Thursday, down from $4.04 a month ago, according to motor club AAA
“Cooler headline growth of retail sales in June is actually good news, reflecting lower gas prices,” Bill Adams, chief U.S. economist, Fifth Third Commercial Bank in Dallas, wrote in a note. “Consumer spending continues to propel the economy.”
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The Labor Department said Tuesday that consumer prices dropped 0.4% from May to June, the largest monthly drop in four years, after increasing 0.5% in the previous month. On a yearly basis, inflation declined to 3.5%, down from a year-over-year gain of 4.2% in May and lower than many economists expected
The core inflation figures suggest that the gas price spike from the Iran war, while it pushed up airfares and some other costs, hasn’t so far led to broad-based, sustained inflation, according to economists. But the United States renewed attacks on Iran and President Donald Trump announced a new blockade in the Strait of Hormuz, a key shipping route for about one-fifth of the world’s oil. The increase threatens to unravel at least some of the progress that occurred last month
Next month, major retailers including Walmart, Target and Macy’s are slated to report their second-quarter earnings reports, which will offer some insight into shopping behavior
A report last month from the Conference Board showed that Americans’ attitudes toward the economy improved slightly this month as gas prices declined, but their outlook is still mostly negative by historical standards
Sarah Williamson, a 27-year-old software support engineer in Raleigh, North Carolina, said that over the last year or so, she’s more conscious of how she spends her money. She feels financially secure given her stable job, but increasing costs of food and gas are making her pull back on frivolous spending
“I shop less overall as a hobby,” she said
Williamson noted that at the supermarket, she avoids buying pre-cut fruits like cantaloupe, which tend to be more expensive than buying the whole cantaloupe, to save money, and is careful about buying clothing for herself. She recently bought a dress for $30, including shipping costs, on the TikTok Shop and a cotton nightgown for $72 on Amazon including shipping fees. The price for the night gown was more than she normally spends, but she figured the price was worth it since she wears it a lot
Brian Reynolds, CEO and founder of Just For Teens, a skincare collection aimed at preteens and teens, noted that his low-price products, which include $5 pimple patches, are aimed at families on a budget and are in the sweet spot of retailing right now
“There’s a lot of space for products that are everyday essentials that are value-priced,” he said
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