Online sales jump 1.9% on Prime Day as gas prices ease
The Commerce Department reported Thursday that U.S. retail sales rose 0.2% in June, a deceleration from a revised 1% gain in May, as consumers adjusted spending amid lingering economic uncertainty and the waning effect of larger tax refunds.
Excluding sales at gas stations, retail sales increased 0.7%, according to the department. The report tracks goods purchases and does not capture services such as travel or hotel stays, providing a partial measure of household consumption.
Online retailers posted the strongest category gain at 1.9%, fueled by spending around Amazon’s Prime Day promotional event, which took place June 23 through June 26. Sales at clothing and accessories stores fell 0.3%, while restaurants — the only services category recorded in the data — saw a 0.1% increase.
The June report arrives as inflation showed signs of easing. The cost of gasoline, clothing, and used cars fell in recent weeks, offering some relief to household budgets. Gas prices dropped to $3.94 per gallon on Thursday from $4.04 a month earlier, according to motor club AAA, and the Commerce Department’s report noted that underlying price pressures also slowed more than anticipated.
On a year-over-year basis, advance retail and food-service sales stood approximately 6.9% above their June 2025 level, according to Federal Reserve Economic Data, indicating that despite the monthly slowdown, consumers have maintained spending above prior-year levels.
MSI previously reported that retail sales beat expectations in May with a 0.9% gain. The June reading marks a notable cooling from that pace, suggesting the spring rebound in consumer spending may be moderating as tax-refund benefits recede.