US retail sales growth in June exceeded analysts' forecasts

In June, US retail sales, not adjusted for inflation, showed a solid 0.6% increase after declines in the previous two months, according to data from the US Commerce Department. This exceeded almost all estimates given in a Bloomberg survey of economists.

Such statistics brought some relief to markets amid growing concerns about consumer behavior. The improved sentiment coincided with some easing of trade tensions between the US and other major economies around the world.

However, over the past week, Donald Trump has reiterated threats to impose higher tariffs on key trading partners. At the same time, the prices of goods most vulnerable to duties, including toys and appliances, have risen markedly in the latest inflation data. That suggests a passing of import costs onto consumers, Bloomberg notes.

The retail sales data mostly reflect purchases of goods, which account for about a third of total consumer spending. Inflation-adjusted statistics on spending on goods and services for June will be released later this month.