Retail sales rise more than expected in June

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Retail sales rebounded in June, an indication that President Trump’s tariffs are not significantly impacting consumer spending habits yet.

Headline retail sales rose 0.6% in June, above economists’ expectations for a 0.1% increase month on month. By comparison, sales decreased 0.9% in May, according to revised Census Bureau data.

The control group in Thursday’s release, which excludes several volatile categories and factors into the gross domestic product (GDP) reading for the quarter, rose 0.5%. That compares with a 0.2% increase seen in May. Economists expected a 0.3% increase.

June sales excluding auto and gas increased 0.6%. Economists had expected a 0.3% rise. In May, sales excluding auto and gas were flat. A 1.8% increase in miscellaneous store retailers and a 1.2% gain in motor vehicle and parts dealer sales led the gains in June.

Also out Thursday morning, data from the Department of Labor showed 221,000 initial jobless claims were filed in the week ending July 12. After picking up in May, weekly filings for unemployment claims are now at their lowest level in three months.

The release comes as investors have held their bets on Federal Reserve interest rate cuts steady despite data out earlier this week that showed signs of sticky inflation.

As of Thursday morning investors were pricing in a 54% chance the central ban cuts interest rates by its September meeting, down from a roughly 70% chance seen just last week, according to the CME FedWatch Tool.