Retail sales rise 0.6% in June following a consumer spending rebound

After an earlier pullback, consumers increased their spending in June, showing resilience despite concerns over tariffs and the U.S. economy. Retail sales rose by 0.6% in June, rebounding from a 0.9% decline in May, according to the Commerce Department. Excluding autos, sales increased by 0.5%.

Categories like clothing, health, personal care, restaurants, and online retailers saw gains, while electronics, appliance retailers, and department stores experienced declines. Despite worries about tariffs, consumers remain confident in the economy.

The report comes amidst fluctuating tariffs that have impacted businesses and households, leading to increased prices for goods. Inflation rose to 2.7% in June from a year earlier, with prices climbing 0.3% from May to June. The Federal Reserve is closely monitoring the economic impact of tariffs.

Consumers have continued spending, with a focus on essentials rather than big-ticket items. The recent Prime Day event and other retail sales drove significant online spending. Retailers are gearing up for the back-to-school season, expecting a 3.3% increase in spending compared to last year.

Analysts are watching quarterly reports from major retailers to understand consumer behavior and business strategies amidst global trade uncertainties. Levi Strauss & Co. announced adjustments in production and pricing due to tariffs.

According to the source: ABC News - Breaking News, Latest News and Videos.