Retail spending was up slightly in July, the Census Bureau reported. File Photo by Michael Reynolds/EPA
Aug. 15 (UPI) — Consumers are still buying things in the United States, a new report from the Census Bureau said Friday.
Spending at U.S. retailers rose 0.5% in July, the report, Advance Monthly Sales for Retail and Food Services, said.
That’s down from June’s upwardly revised 0.9% gain and in line with economists’ expectations. Retail sales are adjusted for seasonal swings, but not inflation.
The trade war waged by President Donald Trump saw consumer sentiment dip in the spring, but Americans are still spending, which is about 70% of economic output.
Car dealership sales climbed 1.6%, and furniture stores’ sales were boosted 1.4%.
Online sales jumped 0.8% in July, coinciding with Amazon‘s Prime Day sale. Gas stations and department stores also saw a rise in spending.
“Prior month retail sales numbers were actually better than previously reported, which makes today’s headline numbers better than they appear,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management. “As long as consumer spending holds up and companies are able to retain workers because of that robust spending, the flywheel can continue to spin, pushing corporate profits and stock prices higher.”
Spending was down among only a few categories, including home improvement stores declining 1%, while electronics retailers fell 0.6%. Restaurants and bars also saw sales decline in July, falling 0.4%, but were up 5.6% from July 2024.
Retail trade sales were up 0.7% from June, and up 3.7% from last year. Non-store retailers were up 8% from last year.
