U.S. Retail Sales Rose 0.2% in June, Driven by Autos and Online Spending
By TopHolding Editorial · Thursday, July 16, 2026 at 12:00 AM
U.S. retail sales edged up 0.2% in June, matching economists' expectations and suggesting resilient consumer spending as the first half of 2026 concluded. Strong gains in auto sales and nonstore retail activity offset a decline at gasoline stations due to lower fuel prices.
U.S. retail sales advanced 0.2% in June, aligning with consensus expectations and signaling robust consumer spending at the close of the first half of 2026. This figure, coupled with upward revisions to prior months that pushed the overall gain to 0.6%, indicates underlying economic strength. Year-over-year, retail sales have climbed 6.7%.
Despite a 5.3% drop in sales at gasoline stations—attributed to falling pump prices rather than diminishing demand—the monthly increase was broad-based, with seven of thirteen major sales categories reporting gains. Automobile sales were a significant contributor, rising 1.9% in June after a 1.1% increase in May. A key measure for assessing economic growth, "core" retail sales—which exclude volatile categories such as autos, building materials, and gasoline—rose 0.4% in June. This metric registered a 9.1% annualized growth rate in the second quarter compared to the first-quarter average, marking the fastest quarterly growth in three years. Within the core grouping, nonstore retailers, encompassing internet and mail-order sales, were a standout, increasing 1.9% for the month and surging at an 18.2% annualized rate in the second quarter.
Sales at restaurants and bars, providing a proxy for services spending in this report, increased 0.1% in June, while May's figure was significantly revised upward from an initial 0.1% decline to a 1.2% increase. It is important to note that these figures are not adjusted for inflation. However, given a decline in consumer prices in June, overall sales in "real"<sup>1</sup> terms—adjusted for inflation—rose 0.6% for the month. While nominal retail sales expanded 6.7% over the past year, real inflation-adjusted sales are up 3.1% in the same period. Encouragingly, real retail sales have now surpassed their pre-pandemic peak from April 2022.
In other economic news, initial jobless claims<sup>2</sup> decreased by 8,000 last week to 208,000, while continuing claims fell by 16,000 to 1.805 million. These figures suggest continued payroll expansion in July. Furthermore, the Philadelphia Fed Manufacturing Index<sup>3</sup>, a gauge of factory sentiment in the region, jumped to a nearly five-year high of +41.4 in July, up from +10.3 in June.
Key terms:
1. Real: Economic data adjusted for inflation, providing a clearer picture of actual purchasing power or growth.
2. Initial jobless claims: A measure of new applications for unemployment benefits, used as an indicator of job market health.
3. Philadelphia Fed Manufacturing Index: A monthly survey of manufacturing firms in the Third Federal Reserve District (Philadelphia) that measures changes in business growth and overall economic conditions.