U.S. retail sales rose 1% month-on-month in July as customers bought school supplies and took advantage of special sales.
The seasonally adjusted increase came after a 0.2% decline in June, according to data released last week by the U.S. Census Bureau. Revenues reached $709.7 billion in July.
“The July data reflects what we’re seeing across the economy: consumers remain cautious, but are willing to spend on essentials when they see value,” said Matthew Shay, CEO of the National Retail Federation. “Despite recent softening labor market trends and interest rates remaining elevated, economic fundamentals are sound and goods inflation has fallen to near zero, even as services prices soar. July sales were likely buoyed by back-to-school and college spending, reflected in rising sales at retailers selling everything from clothing and crayons to computers and dorm furniture.”
Sales were up 2.7% year over year, improving from a 2% year over year increase in June, according to the NRF. Total sales for the first seven months of the year were up 3.4% year over year.
July sales increased year over year in six of the nine retail categories monitored by the NRF. The clothing and accessories category (which includes jewelry) was up 0.6% from June and 5% from the same period last year.
Online sales recorded the largest increase, up 18% year-on-year, while electrical and appliances, sporting goods, hobbies, music and bookstores, and furniture all saw declines.
Image: A family at a shopping mall. (Shutterstock)
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