Retail sales slowed in June as consumer worries about government policies, such as tariffs and the federal budget, continues.
The June sales numbers indicate "that prolonged uncertainty surrounding the economy, tariffs and trade policy could be pushing consumers to adopt a 'wait-and-see' approach with their household budgets,"
National Retail Federation President and CEO Matthew Shay said in the CNBC/NRF Monitor, a report by Affinity Solutions and released by the NRF.
"This was the first monthly decline since February, and spending was down across almost all sectors. Economic fundamentals haven't been disrupted yet and shoppers still have the ability to spend on priorities, but the economy is gradually slowing and there has been an impact on the psyche of consumers," Shay said in a press release regarding the data.
Total retail sales, excluding automobiles and gasoline, were down 0.33% seasonally adjusted month over month but up 3.19% unadjusted year over year in June. That compared with increases of 0.49% month over month and 4.44% year over year in May.
The Retail Monitor calculation of core retail sales (excluding restaurants in addition to automobile dealers and gasoline stations) was down 0.32% month over month in June but up 3.36% year over year. That compared with increases of 0.23% month over month and 4.2% year over year in May.
Total sales were up 4.66% year over year for the first six months of the year and core sales were up 4.93%. The month-over-month drops were the first since February, when total and core sales both fell 0.22% from January.
June sales were up in seven out of nine categories on a yearly basis, led by digital products, sporting goods stores and health and personal care stores, but were down in all but one category on a monthly basis.