US Retail Sales Remain Resilient in July

US retail revenues strengthened last month, largely led by summer promotions, back-to-school shopping and online sales.

Retail and food-services sales advanced 0.7% to $696.4 billion in July compared with June, according to data the US Census Bureau published on Tuesday. Year on year, sales increased 3.2%.

This followed a 0.3% monthly rise in June — revised from an earlier figure of 0.2%.

Amazon’s Prime Day and other retail promotions were responsible for the spike in consumer spending, said Matthew Shay, president and CEO of the National Retail Federation (NRF).

“July retail sales show consumers continue to drive the economy through this period of economic pressure with robust spending supported by steady job growth and wage gains,” Shay commented. “Retailers remain focused on providing essential items at competitive prices for families and students as we approach the end of an expected record back-to-class shopping season.”

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Online and other non-store sales were up 1.9% relative to June and climbed 10.3% year on year. Retail trade sales grew 0.6% from June 2023, and rose 2% versus last year. Department-store sales rebounded, showing a monthly improvement of 0.9%, compared with a 2.3% decline in June.

“Retail sales growth has been slowing, but July got a midsummer boost from special deal days offered by multiple retailers,” said Jack Kleinhenz, the NRF’s chief economist. “The data shows the ongoing resilience in consumer spending and how it is fueling the overall economy.”

Main image: Shoppers at a mall. (Shutterstock)