U.S. retail sales posted a robust growth in July, signaling that American consumers remain resilient despite rising import prices and ongoing concerns over President Donald Trump‘s trade tariffs.
Retail and food service sales rose 0.5% month-over-month to a seasonally adjusted $726.1 billion in July, according to the U.S. Census Bureau. That marked a 3.9% year-over-year increase and aligned with economists’ forecasts.
June’s sales data was revised upward significantly, from a preliminary 0.6% gain to a final 0.9% increase. The revision pushed June’s year-over-year growth to 4.4%.
Where Did Americans Spend More?
Spending in July was broad-based, with the strongest gains concentrated in motor vehicles and parts dealers, which saw a 1.6% monthly increase, and furniture and home furnishing stores, up 1.4%.
Health and personal care stores rose 0.8%, while clothing and accessories retailers posted a 0.6% gain.
Sales excluding autos rose 0.3%, in line with forecasts but showing a slight deceleration from June’s 0.8% gain.
A critical gauge of underlying consumption, the retail sales control group, which strips out volatile components like food services, autos, building materials and gas, rose a stronger-than-expected 0.5%.
Weak Spots In July’s Report
Not all sectors saw growth. Some categories recorded noticeable pullbacks.
Miscellaneous store retailers experienced a 1.7% monthly decline, while building materials and garden equipment stores fell 1%.
Electronics and appliance stores dropped 0.5%, and food services and drinking places saw a 0.4% pullback, indicating a possible shift in consumer behavior or sensitivity to pricing.
In a separate release, import prices rose 0.4% month-over-month in July, reversing a 0.1% drop in June and coming in well above the flat reading economists had expected.
It marks the highest reading since April 2024. The rise points to building cost pressures on goods entering the country.
Market Reactions
U.S. stock futures edged higher on Friday morning as investors positioned themselves ahead of fresh consumer sentiment data and a closely watched meeting between President Trump and Russian President Vladimir Putin, set to take place in Alaska later today.
Futures tied to the S&P 500 rose 0.2% in premarket trading, while contracts on the Dow Jones gained 0.6%, signaling a positive open on Wall Street.
The focus now shifts to the University of Michigan’s preliminary consumer sentiment index for August, due at 10:00 a.m. ET.
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Originally Posted August 15, 2025 – US Retail Sales Rise In July As Consumers Spend Despite Tariffs
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