U.S. Retail Sales Increased 1% in July
- July retail sales in the U.S. increased by 1%, beating expectations.
- The U.S. Census Bureau reported better-than-expected retail sales figures for July.
- Overall, consumer inflation also showed a decrease during the same period.
The U.S. Census Bureau announced on August 15 that retail sales for July surpassed forecasts, indicating a robust consumer spending environment. Retail sales increased by 1% from June, reaching $709.7 billion, and marking a 2.7% rise compared to the same month last year. This growth significantly outpaced the Dow Jones economists' prediction of a mere 0.3% increase. In a broader context, total retail and food services sales have risen by 2.9% over the past seven months. The Census Bureau highlighted that retail trade sales were up 1.1% from June 2024 and 2.6% year-over-year. Notably, nonstore retailers experienced a 6.7% increase from the previous year, while food services and drinking establishments saw a 3.4% rise compared to July 2023. Sales in specific sectors also showed positive trends, with motor vehicle and parts sales climbing 3.6% year-over-year. Electronics and appliance store sales increased by 1.6%, contributing to the overall retail and food services growth of 1%. Analyst Richard de Chazal from William Blair remarked that these figures demonstrate the resilience of U.S. consumers, contradicting narratives of impending economic collapse. This encouraging retail sales report coincided with a significant drop in the Consumer Price Index (CPI) inflation, which fell below 3% for the first time, reflecting the slowest year-over-year inflation rate since March 2021.