United States and Australia consumer spending slows despite mixed signs

In the United States, June retail sales rose 0.2% month‑on‑month, marking a modest increase that kept annual growth at 6.7% despite a sharp decline in gasoline station sales – the biggest monthly drop since December 2022. Non‑store retailers and motor‑vehicle dealers posted the strongest gains, while overall consumer sentiment remained low but spending stayed resilient.

In Australia, June household spending edged up 0.3% month‑on‑month, a slight rise from May’s 0.2% growth. Growth in household goods slowed to 0.1% from 0.9% in May, and recreational spending fell sharply. End‑of‑financial‑year discounts failed to boost a broader spending surge, with inflation running at about 4% year‑on‑year and higher interest rates and the US‑Iran conflict adding pressure on households.