U.S. retail sales were up 5.89% in July as consumers opened up their wallets amid promotional sales from top retailers, according to the National Retail Federation’s (NRF) Retail Monitor. The July results were up 1.45% from June.
Total sales, excluding automobiles and gasoline, also improved, with more moderate year-over-year gains of 3.19% in June.
“Consumer spending increased in July, driven by successful summer sales events held by many retailers and shoppers continuing to pull purchases forward ahead of tariffs,” NRF President and CEO Matthew Shay said. “Month-over-month gains were sizable against a weaker-than-normal June. We may be seeing growing inflationary impacts from tariffs since recent data shows price increases in commodity goods, particularly non-durables. Even with weaker job growth than many expected, consumers still have the ability to spend on household priorities as wages are growing above the rate of inflation.”
Core retail sales, which also exclude restaurant receipts, increased 5.93% from a year ago. That compared to year-over-year gains of 3.36% in June.
Through the first seven months of this year, retail sales are up 4.83%, and core sales rose 5.07% ahead of the NRF full-year growth expectations between 2.7% to 3.7% over 2024.
NRF reports building and garden supply sales were down 4.11% in July, and the other eight categories posted higher year-over-year sales in July.
Online sales rose 25.01% from a year ago, and sales for sporting goods, music and books increased 9.99% from a year ago. General merchandise sales rose 6.94% and clothing and accessory sales were up 6.73% year over year.
Consumers also spent 5.42% on groceries and beverages in July compared to the year-ago period. They also doled out 4.44% more on health and personal care products compared to the same period last year.
Other discretionary categories saw smaller year-over-year gains despite the tariff impact. Electronics and appliance sales were up 2.11% year over year. Furniture and home furnishings sales inched up 1.53% in July.
Consumer confidence also improved in July. Numerator reports the July reading at 55.7, up slightly from June. The report also found 32% think it is somewhat difficult to find a job in the economy, and 48% said their household’s financial situation is good to very good. Also, 63% of consumers are spending more this year, and 52% of think their finances will be the same for the remainder of this year.
However, 41% said they are comfortable spending money on discretionary purchases at this time. Also, 40% are shopping for items on sale, and 38% are buying when there are discounts or coupons to reduce prices.