Retail spending bounced back in July as consumers sought out summer sales promotions to buy goods before more tariffs take effect, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released today by the National Retail Federation (NRF).
“Consumer spending increased in July, driven by successful summer sales events held by many retailers and shoppers continuing to pull purchases forward ahead of tariffs,” NRF President and CEO Matthew Shay said in a release. “Month-over-month gains were sizeable against a weaker-than-normal June. We may be seeing growing inflationary impacts from tariffs since recent data shows price increases in commodity goods, particularly non-durables. Even with weaker job growth than many expected, consumers still have the ability to spend on household priorities as wages are growing above the rate of inflation.”
Total retail sales, excluding automobiles and gasoline, were up 1.45% seasonally adjusted month over month and up 5.89% unadjusted year over year in July, according to the Retail Monitor. That compared with a decrease of 0.33% and an increase of 3.19% year over year in June.
The Retail Monitor calculation of core retail sales (excluding restaurants in addition to automobile dealers and gasoline stations) was up 1.55% month over month in July and up 5.93% year over year. That compared with a decrease of 0.32% month over month and an increase of 3.36% year over year in June.
