US: Summer sales boost spending as consumers brace for tariff impact on prices

Consumer spending was up in July as summer sales helped drive forward activity following a more lacklustre June. According to the CNBC/NRF Retail Monitor, total retail sales in the US, excluding automobiles and gasoline, rose 1.45 percent seasonally adjusted month-over-month.

Unadjusted year-over-year sales increased 5.89 percent, compared to a 3.19 percent decrease in June. Core retail sales, which also exclude restaurants, were also up 1.55 percent MoM and rose 5.93 percent YoY.

In terms of categories, July sales were up in all but one of nine on a yearly basis. Digital products led the way in terms of performance, followed by sporting goods and general merchandise stores, which reported 9.99 percent and 6.94 percent upticks, respectively.

Clothing and accessories stores also welcomed strong performance. Here, MoM sales rose 1.75 percent, while YoY sales were up 6.73 percent.

In a statement, NRF president and CEO, William Shay, said: “We may be seeing growing inflationary impacts from tariffs since recent data shows price increases in commodity goods, particularly non-durables. Even with weaker job growth than many expected, consumers still have the ability to spend on household priorities as wages are growing above the rate of inflation.”