The National Retail Federation (NRF) is reporting that after posting the biggest gain in a year in its June report, U.S. retail sales eked out a positive trend in July as consumers shopped for school supplies and took advantage of special promotional days offered by retailers, according to the CNBC/NRF Retail Monitor, released by the NRF.

“July’s data reflects what we are seeing across the economy, that while consumers remain cautious, they are still spending on essentials when they find value,” said NRF President and CEO Matthew Shay. “Labor market trends have softened recently, and interest rates remain high, but economic fundamentals are intact, and inflation has fallen to nearly zero for goods even though prices for services are elevated. July sales were likely bolstered by back-to-school and back-to-college spending, reflected in gains for retailers selling everything from clothing and crayons to computers and dorm room furnishings.”

Total retail sales, excluding automobiles and gas, were up 0.74 percent seasonally-adjusted month-over-month (m/m) and up 0.92 percent unadjusted year-over-year (y/y) in July, according to the Retail Monitor. That compared with increases of 0.47 percent m/m and 3.42 percent y/y in June.

The Retail Monitor calculation of core retail sales, excluding restaurants in addition to automobiles and gas, was up 0.95 percent m/m in July and up 1.69 percent y/y. That compared with increases of 0.3 percent m/m and 3.07 percent y/y in June.

July sales increases came as some retailers held in-store and online special promotion day events that helped to boost summer sales in recent years.

Total sales were up 2.1 percent y/y for the first seven months of the year, and core sales were up 2.4 percent for the year-to-date period.

Unlike survey-based numbers collected by the Census Bureau, the NRF said 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.

July sales were up in six out of nine retail categories on a yearly basis, led by online sales, general merchandise stores and electronics and appliance stores. Sales were up in seven categories on a monthly basis.

Specifics from key sectors include:

  • Online and other non-store sales were up 0.82 percent m/m seasonally-adjusted and up 18.45 percent y/y unadjusted.
  • Sporting goods, hobby, music, and bookstores were up 1.27 percent m/m seasonally-adjusted and up 1.13 percent y/y unadjusted.
  • Clothing and accessories stores were up 0.32 percent m/m seasonally-adjusted but down 4.79 percent y/y unadjusted.
  • General merchandise stores were up 1.75 percent m/m seasonally-adjusted and up 9.68 percent y/y unadjusted.
  • Electronics and appliance stores were up 0.57 percent m/m seasonally-adjusted and up 5.27 percent y/y unadjusted.
  • Furniture and home furnishings stores were up 1.41 percent m/m seasonally-adjusted and up 2.29 percent y/y unadjusted.
  • Grocery and beverage stores were up 0.6 percent m/m seasonally-adjusted and up 0.47 percent y/y unadjusted.
  • Building and garden supply stores were down 0.53 percent m/m seasonally-adjusted and down 1.97 percent y/y unadjusted.
  • Health and personal care stores were down 0.15 percent m/m seasonally-adjusted and down 2.29 percent y/y unadjusted.

Image courtesy Dick’s Sporting Goods