US Consumer Holds Up as June Retail Sales Edge Higher

US retail sales edged up in June, rising about 0.2% from May, in a reading that painted the picture of a consumer who is holding up but not spending exuberantly. The modest gain suggests household demand remains a steady support for the economy even as Americans grow more selective, a balance that policymakers welcome because it avoids reigniting the price pressures the Federal Reserve is trying to tame. The data rounded out a week of encouraging figures: consumer prices fell more than expected in June and producer prices also came in soft, reinforcing the sense that inflation is cooling while growth continues. For retailers, the numbers point to a cautious but functioning spending environment heading into the second half of the year, with consumers balancing still-elevated prices, higher borrowing costs and a labour market that has softened at the margin but remains broadly healthy. Economists noted that resilient-but-restrained consumption is close to what the Fed would like to see as it weighs its next policy step, giving the central bank flexibility to keep rates steady at its late-July meeting while it monitors whether the recent disinflation proves durable through the summer.