Retail sales rose by 0.6% in July – triple the 0.2% increase that was expected – marking the third straight monthly gain. July figures were also revised slightly higher. A key measure known as the “control group” (which excludes autos, gas, building materials, and food services) climbed 0.7%, beating forecasts by 0.3%. This is important because it directly factors into GDP growth.
What’s the bottom line? Consumers are still spending, despite higher prices from tariffs. Sales gains were broad, with 9 of 13 retail categories showing growth – led by online shopping, clothing and sporting goods, likely due to back-to-school demand.