Back-to-school shopping boosts US retail sales in July

Retail sales in the U.S. rose 1% in July from the previous month as customers purchased school supplies and took advantage of special offers.

The increase – which was seasonally adjusted – came after a 0.2 percent decline in June, according to U.S. Census Bureau data released last week. Revenues reached $709.7 billion in July.

“The July data reflects what we’re seeing across the economy: While consumers remain cautious, they’re still spending money on essentials when they find a good value,” said Matthew Shay, CEO of the National Retail Federation (NRF). “Labor market trends have moderated recently and interest rates remain high, but economic fundamentals are intact and inflation for goods has fallen to near zero, although prices for services are elevated. July sales were likely supported by back-to-school and college spending, which translated into gains for retailers selling everything from clothing and crayons to computers and dorm furniture.”

Sales rose 2.7 percent compared to the same period last year, an improvement from the same period last year, which saw a 2 percent increase in June, the NRF noted. Total sales rose 3.4 percent year-on-year in the first seven months.

Sales increased in six of the nine retail categories tracked by the NRF in July compared to the previous year. The clothing and accessories segment – which includes jewelry – recorded an increase of 0.6 percent compared to June and an increase of 5 percent compared to the same period last year.

Online sales recorded the strongest growth compared to the same period last year (plus 18 percent), while sales in the electronics and household appliances, sporting goods, hobby, music and bookstores, and furniture sectors all declined.

Image: A family in a shopping center. (Shutterstock)