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Clothing, general merchandise, groceries, and sporting goods led the increases, while only building and garden supplies declined year-on-year. \/ Credit: 1000 Words via Shutterstock<\/p>\n
Retail spending in the United States rebounded noticeably in July, as consumers responded to summer sales promotions and accelerated their purchases ahead of looming tariffs, according to the CNBC\/NRF Retail Monitor powered by Affinity Solutions.<\/p>\n
Total retail sales excluding automobiles and gasoline rose by 1.45% (seasonally adjusted) compared to June, and were up 5.89% year-on-year. Core sales\u2014also excluding restaurants\u2014grew by 1.55% month-on-month and 5.93% annually.<\/p>\n
Key gains across retail categories<\/p>\n
Almost all retail sectors posted growth in July. Digital products, such as books and games, were up 1.35% month-on-month and surged 25.01% year-on-year.<\/p>\n
Sporting goods, hobby, music and book stores rose 2.36% month-on-month and 9.99% year-on-year. General merchandise saw increases of 2.04% and 6.94% respectively. Clothing and accessories climbed 1.75% month-on-month and 6.73% year-on-year.<\/p>\n
Grocery and beverage purchases rose 1.43% month-on-month and 5.42% year-on-year, while health and personal care products were up 1.69% and 4.44%. Electronics and appliances dipped 0.51% month-on-month but remained 2.11% ahead year-on-year.<\/p>\n
Furniture and home furnishings gained 0.98% month-on-month and 1.53% annually. The only category to fall year-on-year was building and garden supplies, which dropped 4.11% despite a 1.32% month-on-month uptick.<\/p>\n
What drives the July surge in retail sales<\/p>\n
NRF President and CEO Matthew Shay attributed the robust growth to a combination of successful summer promotions and consumers pulling purchases forward in anticipation of tariff-induced price rises.<\/p>\n
He noted that month-on-month gains followed a weaker-than-average June, and that prices of commodity goods, particularly non-durables, may be rising due to inflationary impacts of tariffs.<\/p>\n
Despite slower job growth than expected, wage increases above inflation have maintained consumers\u2019 ability to spend on household essentials.<\/p>\n
Mid-year sales trends point to resilience<\/p>\n
Through the first seven months of 2025, total retail sales were 4.83% higher year-on-year, while core sales were up 5.07%.<\/p>\n
These trends suggest stronger mid-year performance than the National Retail Federation\u2019s full-year forecast, which anticipates retail sales growth of 2.7% to 3.7% over 2024.<\/p>\n
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