According to the CNBC/National Retail Federation (NRF) Retail Monitor, powered by Affinity Solutions, retail sales slowed in June amid continued consumer concerns about the effect of government policies on the economy.

"June’s numbers indicate that prolonged uncertainty surrounding the economy, tariffs, and trade policy could be pushing consumers to adopt a ‘wait-and-see’ approach with their household budgets," says NRF president and CEO Matthew Shay. "This was the first monthly decline since February, and spending was down across almost all sectors. Economic fundamentals haven’t been disrupted yet and shoppers still have the ability to spend on priorities, but the economy is gradually slowing and there has been an impact on the psyche of consumers. While passage of the ‘Big Beautiful Bill’ is clearly supportive of economic growth, unresolved and restrictive trade policies remain a significant headwind."

Retail Monitor findings revealed that total retail sales (excluding automobiles and gasoline) were down 0.33% seasonally adjusted month over month but up 3.19% unadjusted year over year in June, comparing with increases of 0.49% month over month and 4.44% year over year in May.

The Retail Monitor calculation of core retail sales (excluding restaurants and auto dealers and gas stations) was down 0.32% month over month in June but up 3.36% year over year. In comparison, the month of May saw increases of 0.23% month over month and 4.2% year over year.

Total sales increased by 4.66% year over year during the first half of the year, while core sales rose by 4.93%. The month-over-month declines marked the first drop since February, when both total and core sales dipped 0.22% from January.

Key sector analysis revealed that June sales were up in seven out of nine categories on a yearly basis, but down in all but one category on a monthly basis:

• Digital products (such as e-books and games) were up 0.26% month over month seasonally adjusted and up 24.11% year over year unadjusted.

• Sporting goods, hobby, music, and book stores were down 0.13% month over month seasonally adjusted but up 8.52% year over year unadjusted.

• Health and personal care stores were down 0.31% month over month seasonally adjusted but up 3.47% year over year unadjusted.

• General merchandise stores were down 0.15% month over month seasonally adjusted but up 3.18% year over year unadjusted.

• Grocery and beverage stores were down 0.13% month over month seasonally adjusted but up 2.59% year over year unadjusted.

• Clothing and accessories stores were down 0.22% month over month seasonally adjusted but up 2.71% year over year unadjusted.

• Electronics and appliance stores were down 1.03% month over month seasonally adjusted but up 2.43% year over year unadjusted.

• Furniture and home furnishings stores were down 1.04% month over month seasonally adjusted and down 1.14% year over year unadjusted.

• Building and garden supply stores were down 0.76% month over month seasonally adjusted and down 5.33% year over year unadjusted.