US retail sales increased 1% in July compared with the previous month, as customers bought items for school and took advantage of special deals.
The rise — which was adjusted for seasonal variation — came after a decrease of 0.2% in June, according to data the US Census Bureau released last week. Revenue reached $709.7 billion in July.
“July’s data reflects what we are seeing across the economy, that while consumers remain cautious, they are still spending on essentials when they find value,” said National Retail Federation (NRF) CEO Matthew Shay. “Labor-market trends have softened recently and interest rates remain high, but economic fundamentals are intact and inflation has fallen to nearly zero for goods, even though prices for services are elevated. July sales were likely bolstered by back-to-school and back-to-college spending, which was reflected in gains for retailers selling everything from clothing and crayons to computers and dorm-room furnishings.”
Sales rose 2.7% from the same period a year earlier, an improvement over June’s 2% year-on-year increase, the NRF noted. Total sales advanced 3.4% year on year for the first seven months.
July sales grew year on year in six out of nine retail categories the NRF monitors. The clothing and accessories segment — which includes jewelry — was up 0.6% compared to June and climbed 5% versus the same period a year ago.
Online sales saw the largest year-on-year increase, rising 18%, while electronics and appliances, sporting goods, hobby, music and bookstores, and furniture all decreased.
Image: A family at a shopping mall. (Shutterstock)
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