United States: Retail sales grow at fastest pace since January 2023 in July
Retail sales grew 1.0% month-on-month in seasonally adjusted terms in July (June: -0.2% mom). The result marked the best reading since January 2023 and was more than triple market expectations. The rebound was driven by improved readings for motor vehicle and parts dealers, food and beverages, non-store retailers, and gasoline stations sales, among other sectors.
On an annual basis, retail sales increased 2.7% in July, which was better than June’s 2.0% expansion. Meanwhile, annual average retail sales growth fell to 2.9% in July (June: +3.0%).
“Total retail sales were rather soft during the spring, partly due to persistently weak motor vehicle and gasoline station sales, but firmed up with July’s 1.0% rise. […] July’s retail sales results show that American spending is holding strong and that fears of a looming recession are perhaps unfounded.”