By: Augusta Saraiva
08/15/2025 05:38:21 [BN]
Summary by Bloomberg AI
- US retail sales rose in July in a broad-based advance, boosted by car sales and major online promotions.
- The value of retail purchases increased 0.5% after an upwardly revised 0.9% gain in June, Commerce Department data showed.
- Nine out of 13 categories posted increases, led by the biggest gain in motor vehicle sales since March.
(Bloomberg) — US retail sales rose in July in a broad-based advance, boosted by car sales and major online promotions in a sign consumers stepped up their spending in recent months.
The value of retail purchases, not adjusted for inflation, increased 0.5% after an upwardly revised 0.9% gain in June, Commerce Department data showed Friday. Excluding cars, sales climbed 0.3%.
| Metric | Actual | Estimate |
| Retail sales (MoM) | +0.5% | +0.6% |
| Sales ex. autos (MoM) | +0.3% | +0.3% |
| ‘Control group’ sales (MoM) | +0.5% | +0.4% |
Nine out of 13 categories posted increases, led by the biggest gain in motor vehicle sales since March. Sales at online retailers and general merchandise stores advanced, likely boosted by campaigns including Amazon.com Inc.’s extended Prime Day, Walmart Inc.’s weeklong “Deals” event and a similar promotion at Target Corp.
Friday’s report implies a much better start to consumer spending in the second half of the year after uncertainty around President Donald Trump’s policies — chief among them tariffs — took a toll on sentiment and kept many consumers on the sidelines in the preceding six months. While the labor market is shifting into a lower gear, additional clarity on trade policy and a rebound in the stock market is giving some consumers more confidence about their spending power.
Federal Reserve officials are closely tracking consumer spending — which supports two-thirds of US economic activity — as they assess the trajectory of monetary policy. Though they have so far held interest rates steady this year until they have a better sense of how tariffs will impact prices, several policymakers seem inclined to resume rate cuts in the coming months to ensure the labor market and the broader economy remain healthy.