Overview

• Retail sales rose 0.6% month-on-month in June, reversing a 0.9% decline in May, according to the Commerce Department’s Census Bureau.
• Core sales excluding autos, gasoline, building materials and food services climbed 0.5%, underscoring strength in underlying consumer spending.
• Tariff-exposed goods saw price hikes that likely inflated part of the June sales gain rather than reflecting higher purchase volumes.
• Motor vehicle and parts dealer sales jumped 1.2%, while clothing, restaurant and online retail categories each posted gains.
• With consumer prices up 2.7% year-over-year and sentiment remaining cautious, the Federal Reserve is likely to hold interest rates steady.