Sales at US clothing stores rebounded in July, helping to lift total retail sales during the month and kicking off the third quarter a on solid footing.
Sales at clothing and clothing accessory stores were up 6.4% year-on-year and up 1.3% on the previous month, according to the latest data from the US Census Bureau.
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It also showed sales at department stores were up 0.3% year-over-year and up 1.2% on June. But July sales at sporting goods stores were down 4.9% on the prior year and down 1.7% month-on-month.
According the update, total July sales – including automobiles, gasoline and restaurants – were up 0.5% seasonally adjusted from June and up 6.4% year-over-year. Excluding these so-called core retail sales, retail trade sales were up 0.4% from June and increased 4.9% on last year.
The numbers show consumers continued to spend despite concerns about the growing trade war, the National Retail Federation (NRF) said.
“Today’s numbers mirror the economy, which is in very good shape,” NRF chief economist Jack Kleinhenz said yesterday (15 August), citing consumer confidence, a strengthening labour market and more after-tax dollars in household wallets thanks to tax reform.
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By GlobalData“Consumer fundamentals remain healthy and continue to provide wherewithal for consumers to drive domestic economic growth.”
However, he added that “the fly in the ointment is uncertainty regarding tariffs. If they escalate, they will no doubt weigh on confidence and household spending.”
The data comes two days after NRF revised its annual forecast, saying 2018 retail sales are now expected to grow at least 4.5% over 2017 rather than the 3.8% to 4.4% predicted earlier this year.
