Retail Sales Rise In July
Retail sales in July increased year-over-year as consumers continued to purchase despite their concerns over high prices.
Figures from the Census Bureau show sales in the year’s seventh month were up 2.7% over July of 2023, and up 1% seasonally adjusted when compared to June of this year.
Figures from the National Retail Federation were up 5.2% unadjusted year-over-year and up 0.4% over June. The NRF data, defined as core retail sales, excludes automobile dealers, gasoline stations, and restaurants. Core retail sales were up 3.4% year-over-year for the first seven months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023.
“July’s retail sale figures mirror the strength in the economy, which continues to expand even though there are pressures on growth,” said Jack Kleinhenz, chief economist with the NRF. “The midsummer boost from back-to-school and college spending along with special deal days offered by retailers clearly helped.
He noted that households across the U.S. are proceeding with “measured spending” an getting the benefit of falling retail prices despite still-elevated prices for services.
“Even with growth of the labor force cooling, consumer spending remains the backbone of the economy and is keeping the expansion on a positive path,” said Kleinhenz. “We are all waiting to see what direction the Fed will take with interest rates.”
The CNBC/NRF Retail Monitor, powered by Affinity Solutions, reported that core retail sales were up 0.95% seasonally adjusted month-over-month in July and up 1.69% year-over-year. That compared with increases of 0.3% month-over-month and 3.07% year-over-year in June. The Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually, NRF officials said.
