The Commerce Department said retail sales rose 0.5 percent in June, many economists were looking for a 0.4 percent rise for June.

The June rise was the biggest since March.

Consumers spent more money on building materials, furniture, clothing and sporting goods in June.

Consumer spending fuels two-thirds of the nation's economy.

Auto sales slipped 0.1 percent in June after a 0.2 percent decline in May.

Electronics and home appliances sales dipped 0.1 percent in June, compared with a 1.7 percent increase the month before.

Sales of building and garden supplies rose 2.6 percent versus May's 0.2 percent decline. Sales of clothing rose 1.3 percent in June, on top of a 1.6 percent gain.