July proved to be a strong month for US retail sales, with total sales up 4.3 percent compared to last year. While some of this growth was supported by inflation, underlying volume sales still rose 1.4 percent, signaling steady consumer demand.
Core retail sales, excluding categories such as autos, gasoline, and foodservice, grew 4.7 percent, or 2 percent in volume. Non-store sales rose 8.3 percent, boosted by Prime Day promotions and related online events. Consumers also showed enthusiasm for value-driven deals, with an estimated $6.2 billion in spending pulled forward from August, much of it related to back-to-school shopping and even early holiday purchases.
Seasonal events played a role as well, with Independence Day contributing to higher spending on food, apparel, and home products. Apparel sales climbed 7.4 percent, while furniture and home stores grew 5.8 percent, both supported by promotions. Food and beverage sales rose 3.3 percent, though electronics and home improvement categories softened.
While consumers remain mindful of budgets, the data shows that they continue to prioritize retail spending, especially when presented with strong value. The results mark a positive start to the second half of the year, giving retailers momentum heading into the fall season.
