US retail sales rise 0.6% in June after two months of decline

Despite inflation pressures and tariff uncertainty, the Commerce Department on Thursday revealed that US retail sales rose a stronger-than-expected 0.6% in June. It is a bounce-back after declines in April and May.

Auto sales led the gains with 1.2% growth, as consumers rushed to make purchases ahead of President Donald Trump’s proposed 25% tariff on imported cars and car parts.

Other spending areas reflect that consumers are shopping wisely and pulling back on nonessentials.

Clothing and accessories rose 0.9%, health and personal care increased 0.5%, and online sales climbed 0.4%. 

However, spending on heavily imported goods—such as appliances, electronics, and furniture—declined. Inflation also rose to 2.7% in June, up from 2.4% in May.

Looking ahead, analysts note that July saw big spending from consumers during the four-day Amazon Prime Day and rival sales from big retailers like Walmart and Target.

Adobe Digital Insights notes these sales drove $24.1 billion in online spending, a 30.3% jump from 2024.