Retail sales in June rose 0.6 percent from May, to $457 billion, the Commerce Department said Friday. It was the third straight month of gains, although May retail sales were revised slightly down to 0.2 percent, from a previous estimate of 0.5 percent.
Economists said the increase was a reassuring sign of consumer confidence after a lackluster start to the year. Consumer spending represents more than two-thirds of economic activity, making retail sales a strong gauge of the nation's economic health. It also followed a strong rebound in the job market last month, allaying fears that economic growth was slowing.
But a few months of gains don't necessarily mean that consumers are ready to spend with an open hand, analysts said. Trained to be cautious after years of economic turmoil, many are keeping a tight rein on their expenditures as their pay has stagnated. On Friday, the Labor Department reported that real average hourly earnings fell 0.2 percent in June, driven down by a jump in consumer prices.
Still, the past three months of gains could signal broader economic growth in the second half of the year.
In June, 11 out of 13 categories posted an increase.
Building and garden suppliers rose 3.9 percent, sporting goods and hobby stores saw a 0.8 percent rise, and health and personal care shops climbed 0.7 percent. Reflecting an uptick in gasoline prices, gas stations saw a 1.2 percent rise.
