Retail sales jumped more than expected last month
People shop at a Manhattan retail store on July 15
By Bryan Mena, CNN
Washington (CNN) — Americans are still opening their wallets, even as President Donald Trump’s tariffs start to take a bite.
Retail sales rose 0.6% in June from the prior month, the Commerce Department said Thursday, rebounding from the steep 0.9% decline in May.
June’s number was much stronger than the 0.2% gain economists projected in a FactSet poll. Spending climbed across categories last month, including at car dealerships, which saw one of the biggest monthly increases. Those sales were up a robust 1.2% in June.
However, the figures aren’t adjusted for inflation, and some goods already began to get expensive because of tariffs last month. After factoring in June’s 0.3% increase in consumer prices, retail sales were up a more modest 0.3%.
Still, there were some signs in the latest retail spending report that Americans aren’t quite yet cutting back. Sales at restaurants and bars — often seen as a barometer of discretionary spending — rose a solid 0.6% in June. Whenever consumers cut back, spending on eating out and alcoholic drinks is usually first on the chopping block.
US stock futures were muted Thursday morning. Dow futures fell 67 points, or 0.15%. S&P 500 futures were flat. Nasdaq 100 futures gained 0.14%.
Investors and economic policymakers are keeping a close eye on whether Americans continue to spend as Trump’s tariffs begin to push up prices, since consumer spending powers about two-thirds of the US economy.
This story is developing and will be updated.
The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
