Tax payers received millions of government rebate checks in June, but consumer spending remained soft.

Retail industry sales for June-which exclude automobiles, gas stations and restaurants-rose 1.3% unadjusted over last year and increased 0.2% seasonally adjusted month-to-month, according to the National Retail Federation (NRF).

June retail sales recently released by the U.S. Department of Commerce show total retail sales, which include categories such as autos, gasoline stations and restaurants, increased 0.1% seasonally adjusted from the previous month and 1.0% unadjusted year-over-year.

"Many consumers have been practical with their tax rebate checks, using them to offset higher prices of gas and food," said Rosalind Wells, NRF chief economist. "As retailers enter the back-to-school season, they will have to be creative in finding ways to get consumers to spend on discretionary items."

As further proof that consumers are focusing on necessities, health and personal care stores sales remained solid, and sales at general merchandise stores increased.