US retail sales lose steam in June as consumers pull back

Washington: US consumers pulled back in June as months of higher costs weighed on households, government data showed Thursday, cooling retail sales while further uncertainty looms from the Middle East war.

Retail sales ticked up by 0.2 percent month-on-month to $768.6 billion, in line with analysts' expectations, said the Commerce Department.

But this was a notable deceleration from the 1.0 percent jump in May, the report added.


Excluding motor vehicles and parts, sales dropped by 0.2 percent.

Spending also fell at food and beverage stores, alongside health and personal care shops, the department added.

While sales at gasoline stations tumbled by 5.3 percent between May and June, this downturn coincided with a decline in energy costs amid hopes of a lasting ceasefire between the United States and Iran.

But hostilities have since resumed, sending prices higher again.

US-Israel strikes targeting Iran since late February had sparked Tehran's pushback in nearly closing off the Strait of Hormuz, a key waterway for energy transport.

Energy costs surged in the aftermath.

Costs at US gasoline pumps similarly climbed -- adding to pressure on President Donald Trump's administration ahead of midterm elections this year.

Compared with a year ago, retail sales in June were 6.7 percent higher, the Commerce Department said.