US retail sales rose by 1% in July compared to the previous month, driven by back-to-school purchases and promotional deals, according to data released by the US Census Bureau last week.
The seasonally adjusted growth followed a 0.2% decline in June, with total revenue reaching $709.7 billion for the month.
“July’s data aligns with broader economic trends,” said Matthew Shay, CEO of the National Retail Federation (NRF). “While consumers are cautious, they continue to spend on essentials when they perceive value. Despite a softening labor market and high interest rates, economic fundamentals remain steady, and inflation for goods has nearly disappeared. However, service prices remain elevated. Back-to-school and back-to-college spending likely boosted July sales, benefiting retailers across categories from clothing to school supplies and dorm furnishings.”
Retail sales grew 2.7% year-on-year in July, improving from June’s 2% annual growth, according to the NRF. For the first seven months of the year, total sales increased by 3.4% compared to the same period in 2023.
Year-on-year sales increases were reported in six of the nine retail categories the NRF tracks. Clothing and accessories, including jewelry, saw a 0.6% month-on-month rise and a 5% increase compared to July 2023.
Online sales posted the largest annual growth, jumping 18%, while sectors like electronics, appliances, sporting goods, and furniture saw declines.
