The news: Retail sales advanced 0.5% MoM in July as consumers bought cars and home furnishings, the Commerce Department reported. Sales gained 3.9% YoY.
Why it matters: The results suggest that consumers were receptive to big sales events during the month, including a four-day Amazon Prime Day and competing discounts from Walmart, Target, and other retailers. While motor vehicles and home furnishings category sales both rose more than 1% MoM, sales at clothing, sporting goods, and health and personal care stores also gained.
Our first take: With pressure from rising food prices, higher housing costs, and uncertainty about higher tariffs, consumers remain cost-conscious—but they’re willing to spend when they see clear value. July’s results, building on June’s strength, represent a rebound in spending from a drop in early spring. Still, consumers’ willingness to spend will be tested as tariff-related cost increases start to filter through.
This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.
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