Retail sales increased by 0.5% in July, which was 0.1% lower than anticipated. Helping this figure was a 0.3% positive revision to June. The “control group” – which excludes autos, gasoline, building materials, and food services – rose by 0.5%, which was 0.1% hotter than expected. This measure is especially significant because it directly contributes to GDP calculations.
What’s the bottom line? July retail sales show that the consumer continues to spend in the face of tariffs, although the impact of tariffs on the consumer is hard to quantify at this stage.