June retail sales (excluding automobiles, gas stations and restaurants) were up 4.2 percent, adjusted from June 2017 and increased by 0.07 percent, despite the U.S. trade war with China and other countries, according to the National Retail Federation.

The organization also found that sales increased 4.4 percent on a three-month moving average year-over-year. The meet the higher end of the NRF’s projected growth of 3.8 percent and 4.4 percent per 2017. Overall June sales increased 0.5 percent seasonally adjusted from May and 6.6 year-over-year.

 Highlights include:

“This is a healthy retail sales report and consistent with underlying economic momentum that has fueled a steady run of retail sales increases,” says Jack Kleinhenz, chief economist, NRF. “The big question is whether households can continue this spending pace, which is helping drive the current economic cycle. We think they can, but the big risk to the outlook is the trade war, which could raise prices while reducing consumer confidence and household buying power.”