U.S. consumer spending continued to advance in midsummer, with Commerce Department figures showing retail sales rose 0.5% in July, matching economists’ forecasts. The prior month’s increase was revised up to 0.9% from 0.6%, underscoring stronger momentum than previously reported. Demand was broad-based but led by a 1.6% jump at motor-vehicle and parts dealers as buyers sought to lock in prices ahead of tariff-related increases. Promotions by Amazon and Walmart around back-to-school shopping and extended Prime sales also contributed to the gain. Sales excluding autos climbed 0.3%, while the control group that feeds into GDP calculations advanced 0.5%, topping the 0.4% consensus. Analysts said the data point to resilient household spending despite higher import costs and a cooling labor market. The Atlanta Fed’s GDPNow model projects 2.5% annualized growth for the third quarter, although economists caution that elevated prices and slower hiring could temper consumption later in the year.
Shoppers spent at a healthy pace in July, particularly at the nation's auto dealerships, as they shrug off President Trump's tariffs, which are starting to take a toll on jobs and lead to some price increases. https://t.co/bFEWR3b6vN
🇺🇸 Car buyers rev up U.S. retail sales in effort to beat tariff price hikes. Economy is still growing. https://t.co/NAxe01vdyZ
New-car buyers revved up U.S. retail sales in July as they raced Trump’s tariffs https://t.co/47J1GN6Q0F