WASHINGTON—U.S. retail sales rose less than expected in June as receipts at service stations and building material stores declined, but consumers boosted or maintained spending elsewhere, which likely kept the economy on a solid growth path in the second quarter.
Overall, the mixed report from the Commerce Department on Tuesday painted a picture of consumer resilience, though slowing momentum in spending growth. It did not change expectations that the Federal Reserve would resume raising interest rates this month after keeping them unchanged in June.
“The forces meant to hold back real spending power after 16 months of Fed tightening—drawdowns in pandemic savings, high inflation, higher borrowing costs—fell short of meaningfully slowing consumption,” said Will Compernolle, macro strategist at FHN Financial in New York….