US retail sales rose 0.6% MoM in June, well above the 0.1% MoM consensus forecast, partially reversing the -0.9% MoM drop in May. Sales were up 0.5% QoQ and 4.1% YoY in Q2 2025, with core retail sales (ex-auto and gas) also increasing 0.6% MoM and accelerating to a 1.1% QoQ gain.

• Motor vehicle and parts sales rebounded 1.2% MoM after a -3.8% MoM drop in May, and were up 6.5% YoY in June.
• Gasoline sales were flat MoM, but down -3.3% QoQ and -5.6% YoY in Q2, reflecting weak oil prices.
• Nonstore sales rose 0.4% MoM and 1.5% QoQ, the strongest quarterly gain among goods segments.
• Food services & drinking places were up 0.6% MoM and 2.5% QoQ, the highest among all categories.
• Discretionary goods like electronics (-0.1% MoM), furniture (-0.1% MoM), and sporting goods (+0.2% MoM) were soft but had minimal impact on the headline due to their small weight.