WASHINGTON—Retail sales in the United States rose less than expected in last month, and the drivers, according to the Commerce Department, were declines in receipts at service stations and building material stores.
However, consumers increased their spending, or kept it the same, in all other areas of spending, the report states.
Retail sales increased 0.2% last month. Data for May was revised higher to show sales gaining 0.5% instead of 0.3%.
"A relatively subdued retail sales print suggests below-trend, but not recessionary, deceleration in consumption, a pace that will afford the Federal Reserve some breathing room to conclude its tightening cycle before interest rates adversely affect economic growth,” said NAFCU Economist Noah Yosif. “NAFCU anticipates the Federal Reserve will choose to stick with its forward guidance hinting at another rate hike in July, supported by recent data suggesting that inflation remains persistent and driven by a tight labor market. However, June’s mediocre results could offer justification for refraining from any additional policy firming in the future."