12:38 PM EDT, 07/17/2025 (MT Newswires) -- US retail sales rebounded more than expected in June amid gains in most categories, including the motor vehicles component, government data showed Thursday.

Sales increased 0.6% last month sequentially following a 0.9% drop in May, according to the Census Bureau. The consensus compiled by Bloomberg called for a 0.1% increase in June retail sales.

Spending on motor vehicles and parts rose 1.2% last month after a 3.8% drop in May, while outlays on gas stations were flat. Building material and garden equipment sales turned positive, reflecting a 0.9% rise, with most other categories also seeing gains. Spending on electronics and furniture stores fell 0.1% each.

"The rise in retail sales was broad-based, though spending at electronics and furniture stores -- both on the frontlines of tariff-related price increases -- slipped," Oxford Economics Deputy Chief US Economist Michael Pearce said in remarks e-mailed to MT Newswires. "While we've seen signs that discretionary spending on travel and hospitality are faltering, retail spending at bars and restaurants rebounded in June, highlighting that the pullback by consumers has not been universal."

Earlier this month, US President Donald Trump sent letters to trading partners outlining new tariff rates that will take effect Aug. 1. Trump recently announced plans to impose 30% duties on the European Union and Mexico, starting next month.

Retail sales without the motor vehicle and gas components were up 0.6% last month, compared with Wall Street's views for a 0.3% increase, according to the Thursday report.

Earlier in the week, government data showed that US consumer inflation in the world's largest economy accelerated last month at the fastest pace since January, with analysts saying there were signs of tariffs driving prices higher.

"June's inflation data already indicates emerging price pressures in categories such as home furnishings, recreational goods, and apparel -- areas where tariffs are having a notable impact," said Ksenia Bushmeneva, an economist at TD Economics. "While so far many businesses have tried to absorb higher costs and shield consumers, we expect greater pass through of tariff-related price increases over the summer."

On Wednesday, the Federal Reserve's Beige Book showed that US economic activity rebounded between late May and early this month, though concerns about rising cost pressures grew.