Surge in June Retail Sales Defies Expectations, Following Consumer Retrenchment in May
**Headline:** Consumer Spending and Retail Sales Show Resilience Amidst Tariff Concerns in June 2025
In June 2025, US retail sales experienced a rebound, rising 0.6% after two consecutive months of declines, according to the US Census Bureau. This growth indicates a resilient consumer spending sector despite economic headwinds, such as tariffs and government policies.
However, the CNBC/NRF Retail Monitor reported that sales growth slowed in June 2025, with ongoing consumer anxiety about tariffs and other policies contributing to the slowdown. The National Retail Federation’s chief economist cited this anxiety and confusion as a significant factor influencing consumer spending behavior.
The Conference Board Consumer Confidence Index® fell by 5.4 points in June 2025, signalling deteriorating consumer sentiment. While consumers' views of their current financial situation were still solid, their expectations for the future improved slightly. More consumers now expect a recession in the next 12 months, and purchase plans for big-ticket items like homes and cars showed mixed results.
Tariffs were a significant concern for both consumers and retailers in June 2025. Retailers reported that worries about tariffs and government policies were directly affecting sales growth. Import cargo volumes dropped sharply in late spring 2025, with a brief rebound in July expected before tariffs are reinstated, reflecting ongoing uncertainty for businesses and consumers.
In June 2019, U.S. consumer spending and retail sales were also influenced by escalating U.S.-China trade tensions and the imposition of tariffs. However, the direct, immediate impact on consumer spending was muted that month. Retail sales growth was steady, with a month-over-month increase of 0.4%. Consumer confidence remained relatively high compared to later periods, but began to show signs of softening as trade uncertainty persisted.
In June 2025, online retailers recorded a 0.4% gain, driven by the Amazon Prime events and competing retail sales, which led to a 30.3% increase in online spending, totaling $24.1 billion. Health and personal care sales saw a 0.5% bump, while clothing and accessories sales rose 0.9%. Autos and automotive parts dealers rebounded with a 1.2% increase, but electronics and appliance retailers had sales declines.
Coresight Research estimates that total U.S. back-to-school spending will increase by 3.3% year over year, amounting to $33.3 billion. Economists will examine quarterly financial reports next month from major retailers like Walmart, Target, and Macy's to gauge consumer behavior and business navigation during this chaotic period of global trade.
Department stores also had sales declines, while restaurants sales rose 0.6%. Levi Strauss & Co. is cutting back on making unselling styles and making targeted price increases as it moves production away from China due to tariffs.
Consumers prioritized essential purchases during the Amazon Prime events, according to Numerator's analysis of Amazon Prime orders. If you need detailed, data-driven analysis for June 2019 specifically, please clarify, as this summary is based on current (2025) results and general historical knowledge of 2019, as the search results do not cover 2019 directly.
- The growth in US retail sales in June 2025, despite two consecutive months of declines, hints at the resilience of the consumer spending sector, even amidst economic challenges such as tariffs and government policies.
- The National Retail Federation’s chief economist pointed out that consumer anxiety about tariffs and other policies has been a significant factor influencing consumer spending behavior in June 2025.
- In June 2025, the Conference Board Consumer Confidence Index® showed a decline, signaling deteriorating consumer sentiment, with more consumers anticipating a recession in the next 12 months.
- Retailers reported that concerns about tariffs and government policies were having a direct impact on sales growth in June 2025, leading to a drop in import cargo volumes.
- The ongoing trade issues between the US and China, including tariffs, have impacted consumer spending and retail sales in the past, such as in June 2019, where retail sales growth was steady, but consumer confidence showed signs of softening as trade uncertainty persisted.
