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.

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—also excluding restaurants—grew by 1.55% month-on-month and 5.93% annually.

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.

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.

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.

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.

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.

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.

Despite slower job growth than expected, wage increases above inflation have maintained consumers’ ability to spend on household essentials.

Through the first seven months of 2025, total retail sales were 4.83% higher year-on-year, while core sales were up 5.07%.

These trends suggest stronger mid-year performance than the National Retail Federation’s full-year forecast, which anticipates retail sales growth of 2.7% to 3.7% over 2024.

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“US retail sales jump in July ahead of tariff hikes” was originally created and published by Retail Insight Network, a GlobalData owned brand.

 

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