ALEXANDRIA, Va.—Total retail sales rose 0.5% in July. Although fewer new vehicles were sold, auto sales contributed to overall growth thanks to a record high average transaction price, said NAFCU
Research Assistant Yun Cohen.
She added that Amazon's Prime Day sales and other promotions from large retailers supported growth.
"Overall, consumer spending remained robust at the start of the third quarter," Cohen said in a NAFCU Macro Data Flash report. "Sales growth is expected to remain healthy in the second half of the year, though higher interest rates and tariffs pose downside risks. While consumer sentiment remains elevated, survey results suggested increasing concerns about trade and the general economic outlook."
According to data released by the Census Bureau, July was the sixth consecutive month of retail sales growth; however, June's growth was revised down to 0.2% and May's was lowered to 1.2%.
Core retail sales (excluding light vehicles and gasoline) increased 0.6% in July; auto and gas sales improved 0.4% during the month. Cohen said gasoline sales rose despite declining prices.
Results among the major retail segments were mixed in July. Apparel stores and restaurants saw increases of 1.3%, followed by gas stations (+0.8%), nonstore retailers (+0.8%) and department stores (+0.7%). Sales at sporting goods and hobby stores fell 1.7%, followed by furniture stores (-0.5%) and pharmacies (-0.4%), Cohen said.