American Shoppers Stay Cautious but Keep Spending

U.S. retail sales rose 0.6% in June from the previous month and 3.9% year-over-year, according to U.S. Census Bureau data. The increase marks a partial rebound after declines in April and May, signaling steady consumer activity despite inflation and tariff concerns.

Consumers purchasing products at a supermarket.

Growth was driven by sectors like motor vehicles (up 6.5%) and health and personal care (up 8.3%), which outpaced related price increases. Clothing sales rose 3.9% even as apparel prices fell, pointing to possible volume growth. Bars and restaurants also saw gains, while eCommerce rose 4.5% annually.

Analysts noted that while the headline figures suggest resilience, many consumers are showing caution. A third reported spending less or buying in smaller quantities. Shoppers are opting for deals and shifting to lower-cost alternatives.

Though job security and wages have supported spending so far, experts warn that upcoming tariff deadlines, persistent inflation, and a softer job market could cool momentum in the second half of the year. For now, consumer behavior reflects adaptation rather than expansion.