After an earlier pullback, consumers picked up their spending in June despite anxiety over tariffs and the state of the U.S. economy.
Retail sales rose a better-than-expected 0.6% in June after declining 0.9% in May, the Commerce Department said Thursday. Sales in April fell 0.1%, pulled down by a steep drop in auto sales, after Americans ramped up their car buying in March to get ahead of President Donald Trump’s 25% duty on imported cars and car parts.
Excluding autos and automotive parts, sales rose 0.5%, according to the Commerce Department.
There was broad-based strength across the board. Clothing and accessories sales rose 0.9%, while health and personal care sales saw a 0.5% bump. Sales at restaurants rose 0.6%, while online retailers recorded a 0.4% gain. Autos and automotive parts dealers rebounded with a 1.2% increase.
There were a few weak spots like electronics and appliance retailers and department stores, both of which had sales declines.
Heather Long, chief economist at Navy Federal Credit Union, noted that layoffs remain low and consumers are still confident enough that the economy is chugging along.
“Don’t count the American consumer out yet,” said Long in a statement. “There’s still a lot of trepidation about tariffs and likely price hikes, but consumers are willing to buy if they feel they can get a good deal. The word of the summer for the economy is resilient.”
