US Retail Sales Report Showcases Consumer, Economic Resilience

WASHINGTON—U.S. retail sales were unchanged in June as a drop in receipts at auto dealerships was offset by broad strength elsewhere, a display of consumer resilience that bolstered economic growth prospects for the second quarter.

The better-than-expected report from the Commerce Department on Tuesday also showed sales in May were higher than initially estimated. It did not change expectations that the Federal Reserve could start cutting interest rates in September amid cooling inflation and helped to assuage fears of a sharp slowdown in the economy.

“The economy is in pretty good shape,” said Bill Adams, chief economist at Comerica Bank. “There are signs of softness around the edges where low- and moderate-income consumers are pulling back...but openhanded spending by affluent consumers is keeping the economy as a whole moving forward.”

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