Online Shopping, Autos Drive June Retail Gains.

Retail sales rose modestly in June as lower gasoline prices weighed on the overall figure, while stronger spending on vehicles and online purchases pointed to continued consumer resilience despite economic uncertainty.

Retail sales increased 0.2% in June after a revised 1% gain in May, according to a Commerce Department report released Thursday. Excluding gas stations, retail sales rose 0.7%.

The government figures are not adjusted for inflation, and a sharp decline in gasoline prices reduced the overall sales total. Sales at gas stations fell 5.3% during the month, while sales at motor vehicle and parts dealers climbed 1.9%.

Consumers were more selective in other spending categories as the effects of earlier government tax benefits faded. Sales at clothing and accessories stores declined 0.3%, matching a 0.3% drop at miscellaneous retailers. Department store sales edged up 0.1%.

Online retailers posted a 1.9% increase in sales, aided by spending surrounding Amazon’s Prime Day event, which took place June 23-26. Sales at sporting goods, hobby, musical instrument and bookstores rose 1.3%, likely benefiting from consumer spending tied to the FIFA World Cup.

Restaurant sales, the only services category included in the report, increased 0.1%.

The retail sales report comes after government data showed inflation cooled in June as prices for gasoline, clothing and used vehicles declined. The Labor Department said consumer prices fell 0.4% from May, the largest monthly decline in four years, after rising 0.5% the previous month. Annual inflation slowed to 3.5% from 4.2% in May.

“Cooler headline growth of retail sales in June is actually good news, reflecting lower gas prices,” Bill Adams, chief U.S. economist at Fifth Third Commercial Bank in Dallas, wrote in a note. “Consumer spending continues to propel the economy.”

Economists said core inflation data suggest that higher fuel prices tied to the conflict with Iran have not yet triggered widespread inflation across the economy. However, renewed U.S. attacks on Iran and President Trump’s announcement of a blockade in the Strait of Hormuz, a key shipping route for roughly one-fifth of the world’s oil supply, could push energy prices higher and threaten recent progress in slowing inflation.