US retail sales dip in June amid policy uncertainty: NRF

US retail sales declined in June as consumer concerns over government policies weighed on spending, according to the CNBC/NRF Retail Monitor released by the National Retail Federation.

Total retail sales, excluding automobiles and gasoline, fell 0.33 per cent month over month (MoM) on a seasonally adjusted basis but rose 3.19 per cent year over year (YoY). This compares to May’s stronger performance, which showed a 0.49 per cent monthly increase and a 4.44 per cent annual rise.

Core retail sales, which exclude restaurants in addition to autos and fuel, dropped 0.32 per cent MoM in June but remained 3.36 per cent higher than a year earlier.

In May, core sales rose 0.23 per cent from the previous month and 4.2 per cent from the prior year. The June pullback marked the first monthly decline in both total and core sales since February, when both metrics fell by 0.22 per cent.

“June’s numbers indicate that prolonged uncertainty surrounding the economy, tariffs and trade policy could be pushing consumers to adopt a ‘wait-and-see’ approach with their household budgets. This was the first monthly decline since February, and spending was down across almost all sectors,” said NRF president and CEO Matthew Shay.

Despite the monthly downturn, sales for the first six months of 2025 remained solid. Total sales rose 4.66 per cent and core sales were up 4.93 per cent YoY.

Category-wise, clothing and accessories sales declined 0.22 per cent MoM but rose 2.71 per cent annually. General merchandise stores saw a 0.15 per cent drop from May but recorded a 3.18 per cent gain over the year. Furniture and home furnishings experienced the weakest results, falling 1.04 per cent from the previous month and 1.14 per cent from the previous year. 

“This was the first monthly decline since February, and spending was down across almost all sectors. Economic fundamentals haven’t been disrupted yet and shoppers still have the ability to spend on priorities, but the economy is gradually slowing and there has been an impact on the psyche of consumers. While passage of the ‘Big Beautiful Bill’ is clearly supportive of economic growth, unresolved and restrictive trade policies remain a significant headwind,” Shay added.

ALCHEMPro News Desk (HU)