U.S. Retail Sales Jump 0.6% in June, Beating Forecasts.
U.S. retail sales increased by 0.6% in June.
U.S. retail sales rose more than expected in June, rebounding after two consecutive monthly declines, driven in part by stronger motor vehicle sales.
According to data from the U.S. Commerce Department’s Census Bureau, seasonally adjusted retail sales climbed 0.6% month-over-month, reversing May’s 0.9% decline. This figure beat economists’ expectations for a modest 0.1% rise. Core retail sales, which exclude autos and auto parts, also outperformed forecasts, increasing 0.5% versus a projected 0.3% gain.
Apparel sales, often sensitive to tariff shifts, rose 0.9% from May, though this was offset by slight declines in home furnishings and electronics.
Elsewhere, the Philadelphia Fed Manufacturing Index turned positive—an encouraging sign for regional and potentially national manufacturing activity. Meanwhile, initial jobless claims eased slightly to 221,000, indicating continued labor market resilience.
In trade data, import prices rose just 0.1% in June, below expectations, while export prices climbed 0.5%, surpassing forecasts for flat growth.
These figures come amid concerns that broad U.S. tariffs are beginning to lift consumer prices, especially for goods more directly affected by the levies. However, services inflation remains relatively subdued.
Despite strong pressure from President Donald Trump for swift interest rate cuts, Federal Reserve Chair Jerome Powell has maintained a cautious stance, favoring a wait-and-see approach. He emphasized the need to assess the broader economic impact of tariffs before making any decisions on future changes to borrowing costs.
