Retail sales rose 0.6% in June from the prior month, the Commerce Department said Thursday, rebounding from the steep 0.9% decline in May. June’s number was much stronger than the 0.2% gain economists projected in a FactSet poll. The figures are adjusted for seasonal swings but not inflation.

U.S. retail sales rebounded more than expected in June, suggesting the economy was regaining momentum and giving the Federal Reserve cover to delay cutting interest rates while it gauges the inflation fallout from import tariffs.

After an earlier pullback, consumers picked up their spending in June despite anxiety over tariffs and the state of the U.S. economy. Retail sales rose a better-than-expected 0.6% in June after declining 0.