Spending at US retailers rose in July at a much faster pace than in the prior month, showing that American consumers are still powering the economy with their spending.
Retail sales, which are adjusted for seasonality but not inflation, rose 0.7% in July from the prior month, the Commerce Department reported Tuesday. That was a faster pace than the previous month's upwardly revised 0.3% gain and above economists' expectations of a 0.4% rise, according to Refinitiv.
Spending rose on nondurable items, such as clothing and sporting goods. Meanwhile, sales of durable goods — defined as products meant to last at least three years — slipped. Sales at furniture stores fell 1.8% in July from June, and declined 1.3% at electronics and appliance stores during the same period.
Gas prices recently climbed to their highest level in nearly 10 months, which can influence the Commerce Department's retail-sales figures. Excluding spending at gasoline stations, retail sales rose 0.8% in July from the prior month.
The figures reflect continued resilience from US consumers in the face of higher interest rates and still-high inflation. Retail giants such as Walmart, Target and TJ Maxx parent company TJX report second quarter earnings this week, which could offer some clues on the state of the US consumer.
The US economy has displayed remarkable resilience this summer, despite 11 interest-rate hikes since the Federal Reserve began its inflation fight in March 2022. Wall Street bankers and Fed economists have recently revoked their estimates of a US recession because of the economy's surprising strength this summer.
This story is developing and will be updated.
