In July, U.S. retail sales surged to $250.37 billion, marking a 6% year-over-year increase in core retail segments (excluding food, auto, and fuel), according to the Commerce Department’s Census Bureau. This growth underscores the resilience of consumer spending despite economic pressures like high inflation and interest rates. Bankrate’s Ted Rossman attributes this trend to strong consumer activity, bolstered by events such as Amazon’s Prime Day.
However, the National Retail Federation reported a more modest 1.7% increase in retail sales, excluding restaurants, autos, and gas. The government’s overall figure benefited from a 11.6% rise in e-commerce, driven by competitive sales promotions.
The report highlights a selective consumer base, with increased credit card usage and a shift towards value and essentials. Although back-to-school spending may have occurred early, July’s numbers suggest that consumers are finding ways to navigate economic uncertainties while adjusting spending habits. Electronics saw a notable 7.2% increase, while apparel and department store sales faced slight declines. Sporting goods and hobby stores experienced a 5% drop.
