LDN Business - Retail Sales

Retail sales up just 0.2% in June, but excluding business at the gas pump, shoppers are resilient

[July 17, 2026] By ANNE D'INNOCENZIO

NEW YORK (AP) — Shoppers slowed their spending in June from May, as they spent less to fill their gas tank because of falling gas prices.

But the report, released by the Commerce Department on Thursday, showed consumers' continued resilience despite ongoing economic uncertainty as they bought cars and took advantage of summer sales events.

Retail sales rose 0.2% in June, after being up a revised 1% in May, according to the report.

Outside of gas stations, retail sales rose a solid 0.7%, according to the report.

The government figures aren't adjusted for inflation so last month's decline in gas prices pulled down gas station sales and thus the overall retail sales figure.

Business at gas stations fell 5.3% last month. Meanwhile, sales at motor vehicle and parts dealers rose 1.9%, helped by aggressive manufacturers' incentives, according to the report.

Elsewhere, shoppers were selective in their buying, given their worries about the economy and fading benefits of generous government tax benefits, which propelled spending earlier in the spring.

Business at clothing and accessories stores as well as at miscellaneous retailers both posted small declines, And sales at retailers that sell big-ticket items were mixed, with business at furniture and home furnishings merchants flat, while electronics and appliance stores showing a small increase for June.

World Cup boost

Among the bright spots: online sales rose 1.9%, fueled by spending surrounding Amazon's Prime Day event, which was held from June 23 through June 26. Business at sporting goods, hobby, musical instrument and book stores was up 1.3%, likely helped by spending around the World Cup tournament.

The data offers only a snapshot of consumer spending and doesn’t include activities like travel and hotel stays. The lone services category – restaurants – registered a slim 0.1% increase.

The so-called control group—which excludes food services, autos, building materials and gas station sales and is used to calculate economic growth—rose a solid 0.5%.

The report comes as U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, offering some relief to consumers, while underlying price pressures also slowed more than anticipated.

Gas prices fell to $3.94 per gallon on Thursday, down from $4.04 a month ago, according to motor club AAA.

“Falling fuel prices weighed on headline sales data, but a smaller bill at the pump was a source of relief for consumers and provided at least a little more cushion in household spending budgets,” Jim Baird, chief investment officer with Plante Moran Financial Advisors, wrote in a report published Thursday.

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But Baird noted the June report suggests consumers are “perhaps taking a more discerning approach to where they’re spending and how they’re prioritizing their choices.”

The Labor Department said Tuesday that consumer prices dropped 0.4% from May to June, the largest monthly drop in four years, after increasing 0.5% in the previous month. On a yearly basis, inflation declined to 3.5%, down from a year-over-year gain of 4.2% in May and lower than many economists expected.

Muted impact at the gas pump

The core inflation figures suggest that the gas price spike from the Iran war, while it pushed up airfares and some other costs, hasn’t so far led to broad-based, sustained inflation, according to economists. But the United States renewed attacks on Iran and President Donald Trump announced a new blockade in the Strait of Hormuz, a key shipping route for about one-fifth of the world’s oil. The increase threatens to unravel at least some of the progress that occurred last month.

Next month, major retailers including Walmart, Target and Macy’s, are slated to announce their second-quarter earnings results, which will offer some insight into shopping behavior.

A report last month from the Conference Board showed that Americans’ attitudes toward the economy improved slightly this month as gas prices declined, but their outlook is still mostly negative by historical standards.

Sara Williamson, a 27-year-old software support engineer in Raleigh, North Carolina, said that over the last year or so, she’s more conscious of how she spends her money. She feels financially secure given her stable job, but increasing costs of food and gas are making her pull back on frivolous spending.

“I shop less overall as a hobby,” she said.

Williamson noted that at the supermarket, she avoids buying pre-cut fruits like cantaloupe, which tend to be more expensive than buying the whole cantaloupe, to save money, and is careful about buying clothing for herself.

Brian Reynolds, CEO and founder of Just For Teens, a skincare collection aimed at preteens and teens, noted that his low-price products, which include $5 pimple patches, are aimed at families on a budget and are in the sweet spot of retailing right now.

By October, his brand will be expanded to 10,000 Dollar General stores, up from about 4,000 late last year. He said sales have been decent so far, but he expects that business will see more of a momentum for the back-to-school selling season.

“There’s a lot of space for products that are everyday essentials that are value-priced,” he said.

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