The Globe and Mail reports in its Friday edition that U.S. retail sales increased marginally in June as lower gas prices weighed on receipts at service stations, though bargain-hunting consumers continued to support underlying spending. A Reuters dispatch to The Globe says retail sales rose 0.2 per cent last month after an upwardly revised 1.0-per-cent jump in May, the Commerce Department's Census Bureau said Thursday. Average gasoline prices fell to $4.18 (U.S.) a gallon last month from $4.61 (U.S.) in May. The modest relief at the pump, which reflected a retreat in oil prices as a shaky ceasefire between the U.S. and Iran took hold, freed money for spending elsewhere. But the truce collapsed last week and the renewed hostilities in the Middle East have sent oil and gasoline prices rising again. Core retail sales were likely lifted by Amazon's Prime Day event toward the end of the month. Household budgets have been strained by higher prices from import tariffs and more recently the Middle East conflict. Spending continues to be driven by higher-income households, which have enjoyed a stock market rally. The Atlanta Fed's model is forecasting GDP growth at a 1.3-per-cent annualized rate in the April-June quarter.
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