Retail sales rose 0.6% to $720.1 billion in June and 3.9% year over year, the Commerce Department reported today, a larger-than-expected sales bump that follows a steep 0.9% decline in May.
Retail trade sales—which exclude motor vehicles, parts, and gas stations—also saw a 0.6% rise.
The sales numbers, which aren’t adjusted for inflation, come after the Bureau of Labor Statistics reported earlier this week the Consumer Price Index rose 0.3% in June and 2.7% year over year, following a 0.1% increase in May, as the effects of President Trump’s tariffs began to take hold. Core inflation, excluding food and energy prices, jumped 0.2% from May and 2.9% YoY. Appliances, household furnishings, and apparel were among categories with notable price bumps.
Segments that garnered retail sales jumps month over month include nonstore retailers, which includes online sales, up 0.4%, along with food and beverage stores (0.5%, with a 0.5% rise at grocery stores, too), health and personal care stores (0.5%), general merchandise stores (0.5%, though department stores saw a 0.8% dip), and clothing and accessories stores (0.9%). Miscellaneous store retailers got the largest bump, with sales up 1.8% from May.
Furniture and home furnishing stores and electronics and appliance stores both saw sales dip slightly, down 0.1%.
Though spending and consumer sentiment don’t always move in tandem, the rebounding sales come after a modest turnaround in consumer sentiment in June. It rose 16.3% from May after six straight months of decline, though it still remains notably below the December 2024 post-election drop-off, according to the University of Michigan.
But, but, but: As the CNBC/NRF Retail Monitor reported last week—which uses purchases from credit and debit cards rather than the Commerce Department’s method of surveying select retailers—core retail sales were down 0.32% in June but rose 3.36% YoY.
“June’s 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,” NRF President and CEO Matthew Shay said in a statement.