U.S. retail sales edged up in June, as falling gasoline prices limited revenues at gas stations, while consumers seeking deals and discounts continued to support core spending.

The Commerce Department's Census Bureau said on Thursday that retail sales rose 0.2 percent last month, after May data was revised up to show growth of 1 percent.

Economists polled by Reuters had forecast sales, which mostly consist of goods and are not adjusted for inflation, rising 0.2 percent, after a preliminary reading showed a 0.9 percent increase in May. Estimates ranged from a drop of 0.4 percent to a rise of 1 percent.

Data from the U.S. Energy Information Administration showed the average gasoline price fell to $4.18 per gallon in June, compared with $4.61 in May.

The decline in fuel prices, driven by lower oil prices amid a temporary ceasefire between the United States and Iran, gave households more room to spend on other sectors. However, the collapse of the truce last week and renewed military operations in the Middle East have pushed oil and gasoline prices back up.

In contrast, core retail sales, which exclude autos, gasoline, building materials and food services, rose 0.5 percent in June, after May's growth was revised to 0.8 percent. This reading is closely correlated with the consumer spending component of gross domestic product, and previous data had shown it growing 0.7 percent in May.

Amazon's Prime Day event at the end of the month, along with promotional campaigns by competing retailers, likely boosted core sales.

The FIFA World Cup is also believed to have contributed to higher revenues for restaurants and cafes.

Bank of America Institute reported on Wednesday that an analysis of payment card data showed spending has been rising again at discount clothing stores and budget grocery stores since the start of the year, noting that 'more price-sensitive consumers are increasingly turning to general merchandise stores in search of deals and discounts.'

Tariffs on imports, along with the fallout from the conflict in the Middle East, continue to strain household budgets. Nevertheless, spending is still supported by high-income households, which have benefited from gains in stock markets.

The institute added that low-income households have become more inclined to buy lower-cost goods, noting that their spending rate at discount clothing stores has been five times that of high-income households since the beginning of 2026.

The Federal Reserve's Beige Book report, released on Wednesday, showed that consumer spending rose slightly in early July, with many districts noting a decline in spending on non-essential goods or a shift toward cheaper alternatives.

Economists expect consumer spending, which accounts for more than two-thirds of the U.S. economy, to regain momentum in the second quarter, after nearly stalling in the first quarter (January-March).

The Atlanta Federal Reserve's GDPNow model estimates the U.S. economy growing at an annualized rate of 1.3 percent in the second quarter (April-June), compared with growth of 2.1 percent in the first quarter.