Shoppers slowed their spending in June from May amid continuing economic uncertainty and fading benefits from generous government tax refunds

A sale information sign is displayed at a retail store in Wheeling, Ill., Thursday, June 25, 2026. (AP Photo/Nam Y. Huh)

NEW YORK (AP) — Shoppers slowed their spending in June from May as amid continuing economic uncertainty and fading benefits from generous government tax refunds.

Retail sales rose 0.2% in June, after being up a revised 1% in May, according to the Commerce Department's report released on Thursday.

Excluding business at gas stations, retail sales were up 0.7%

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A sale information sign is displayed at a grocery store in Wheeling, Ill., Thursday, June 25, 2026. (AP Photo/Nam Y. Huh)

Business at clothing and accessories stores slipped 0.3%, while online sales rose 1.9% fueled by spending surrounding Amazon's Prime Day event, which was held from June 23 through June 26.

The data offers only a snapshot of consumer spending and doesn’t include activities like travel and hotel stays. The lone services category – restaurants – registered a 0.1% increase.

The report comes as U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, offering some relief to consumers, while underlying price pressures also slowed more than anticipated.

Gas prices fell to $3.94 per gallon on Thursday, down from $4.04 a month ago, according to motor club AAA.