With gas receipts plunging, June retail sales show a resilient consumer

Retail sales rose modestly in June, dragged down by a drop in gas-station receipts that masked strong gains at some merchants.

The value of retail purchases rose 0.2% in June after a revised 1% advance in May, Census Bureau data showed Thursday. The figures are not adjusted for inflation. Outside of gasoline stations, sales increased 0.7%.

Seven of 13 retail categories posted gains. Gasoline-station receipts fell 5.3%, the sharpest decline since 2022, as average national pump prices dropped roughly 50 cents a gallon in June. Receipts at nonstore retailers jumped 1.9%, the biggest increase in nearly a year, likely boosted by Amazon.com Inc.’s Prime Day event.

Other discretionary categories, such as sporting goods and hobby stores as well as electronic and appliance stores, also rose. Outlays at motor vehicle and parts dealers climbed by the most since July 2025. Spending at restaurants and bars, the only service-sector category in the retail report, edged up.

The report signals continued resilience in consumer spending heading into the summer months. Cheaper gas offered households some breathing room for discretionary purchases last month, while sales promotions across major retailers and the FIFA World Cup may have also lifted sales.

Bank of America Corp. card data showed spending picked up steam across income groups in June, with lower-income households in particular benefiting from reduced prices at the pump. And online spending across all retailers was up during Amazon’s Prime Day sale compared to last year’s event, according to Adobe Inc.

Looking ahead, it’s unclear if the respite in gas prices — and inflation more broadly — will prove short-lived. The U.S. and Iran have renewed attacks on one another, driving up oil prices and once again disrupting shipping through the Strait of Hormuz.

What companies are saying:

“Consumers and small businesses continue to show resilience despite elevated gas prices and inflation, with higher tax refunds and a solid labor market contributing to strong spend growth.” — Jeremy Barnum, CFO of JPMorgan Chase & Co., on a July 14 earnings call.

“The consumer is worse than what we had anticipated, and it’s driven mainly by gas prices.” — Ramon Laguarta, CEO of PepsiCo Inc., on a July 9 earnings call.

“Consumers and businesses remain strong. Consumer spending is higher, charge-offs are lower, and savings and investments are growing across customer segments.” — Charlie Scharf, CEO of Wells Fargo & Co., on a July 14 earnings call.

“The consumer is going to continue to be pressured. And we do expect to see them continue to change their behavior because of that, being more deliberate in how and where they shop, buying more on promotion and less on everyday prices.” — Dana McNabb, COO of General Mills Inc., on a July 1 earnings call.

The retail sales report showed so-called control-group sales rose 0.5% — which feed into the government’s calculation of goods spending for gross domestic product. The measure excludes food services, auto dealers, building materials stores and gasoline stations.

“Lower gasoline prices mean June retail sales understate the strength of demand,” Bloomberg Economics’ Eliza Winger said in a note. “Beneath the softer headline, temporary factors played a role in boosting sales.”

Separate data out Thursday showed applications for unemployment benefits fell last week to 208,000, the lowest level since May.

Fanzeres writes for Bloomberg.