Iran war and high inflation have limited impact
Fans buy snacks and drinks during the 2026 World Cup in Los Angeles Stadium
Sales at U.S. retailers rose solidly in June, as Americans bought more new cars and spent more online during Amazon's annual summer sales event.
Sales at U.S. retailers increased 0.2% in June, the government said Thursday.
If gas stations are set aside, sales rose a more robust 0.7%, largely because of an acceleration in purchases of new cars and Amazon Prime Day.
What helped households was a 15% decline in gas prices from the middle of May until the end of June after the U.S. and Iran agreed to a temporary end to hostilities to allow room for peace talks.
Gas prices could rise later in the month in light a resumption of hostilities, but so far the cost of oil hasn't risen all that much compared to the spring.
Retail sales represent a large slice of consumer spending, the main pillar of growth for the U.S. economy. The monthly figures are adjusted for seasonal swings in sales.
Big picture: The U.S. is beset by high inflation, slow job creation and high mortgage rates that have depressed the housing market. That's the bad news.
Yet the economy still growing at a solid pace and could even strengthen once the Iran conflict is resolved.
Layoffs and unemployment are low, businesses are investing heavily in new technologies and Americans are spending more than enough to keep the economy out of danger.
Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open mixed in Thursday trades.
-Jeffry Bartash
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(END) Dow Jones Newswires
July 16, 2026 08:41 ET (12:41 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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