Beating economists’ estimates and forecasts, retail sales edged higher in the month of July breaking three consecutive months of declining sales and further demonstrating that consumers are gaining some semblance of confidence this summer. The Commerce Department said sales rose 0.8 percent seasonally adjusted from Junelast month, beating economist expectations of a more modest 0.3 percent increase jump. The positive sign follows three previous months of declines that included a 0.7 percent drop in June. Year-over-year, sales climbed 1.2 percent.
“Halfway through the back-to-school season retailers are seeing positive signs that consumers are spending,” NRF President and CEO Matthew Shay said. “However, sustained retail growth hinges on Congress’ and the administration’s ability to make smart decisions about the economy and Americans’ confidence in our long-term recovery.”
July retail sales, released today by the U.S. Department of Commerce, showed total retail and food services sales (which include non-general merchandise categories such as automobiles, gasoline stations, and restaurants) increased 0.8 percent seasonally adjusted month-to-month and 4.1 percent adjusted year-over-year. If it were unadjusted it would be 3.4 percent.
“Despite high unemployment, and political and fiscal uncertainty, consumers are spending again, albeit cautiously,” NRF Chief Economist Jack Kleinhenz said. “Retail sales continue to remain resilient in the face of bleak international news, with retailers on track with sustained sales growth year-over-year and year to date. Retail sales will continue to see modest growth in the fall and winter.”
Other findings from the July retail sales report include:
Clothing and clothing accessories stores' sales increased 0.8 percent seasonally-adjusted month-to-month and 2.6 percent unadjusted year-over-year.
Electronics and appliance stores’ sales increased 0.9 percent seasonally-adjusted month-to-month yet decreased 1.1 percent unadjusted year-over-year.
Furniture and home furnishing stores’ sales increased 1.1 percent seasonally-adjusted month-to-month and 9.0 percent unadjusted year-over-year.
General merchandise stores’ sales increased 0.7 percent seasonally-adjusted month-to-month yet decreased 1.4 percent unadjusted year-over-year.
Health and personal care stores’ sales increased 1.1 percent seasonally-adjusted month-to-month and 0.7 percent unadjusted year-over-year.
Sporting goods, hobby, book and music stores’ sales increased 1.6 percent seasonally-adjusted month-to-month and 8.0 percent unadjusted year-over-year.
