Aug. 15 (UPI) — The U.S. Census Bureau reported Thursday that July retail sales were better than expected, as consumer inflation also dipped.
Retail sales rose 1% over June to $709.7 billion, up 2.7% from a year ago.
Retail sales rose 2.7% in July from a year ago, according to a Thursday U.S. Census Bureau report. Sales were up 1% for the month when the expectation was for a 0.3% rise. File Photo by John Angelillo/UPI | License Photo
The increase greatly exceeded Dow Jones economists’ expectations of a 0.3% bump.
Census data showed total retail and food services sales rose 2.9% over the past seven months.
“Retail trade sales were up 1.1% from June 2024, and up 2.6% from last year,” the Census Bureau statement said. “Nonstore retailers were up 6.7% from last year, while food services and drinking places were up 3.4% from July 2023.”
The Census Bureau found that motor vehicle and parts sales were up 3.6% from a year ago. Electronics and appliance store sales rose 1.6% while retail and food services was up by 1%.
“Once again, this was further evidence that the U.S. consumer still has the ability to surprise to the upside,” wrote William Blair analyst Richard de Chazal. “This was another solid report, and inconsistent with a consumer who is on the brink of collapse.”
The better-than-expected retail sales news came as CPI inflation dropped below 3% for the first time, with year-to-year inflation rising at the slowest rate since March 2021.
Based on the data, financial markets expect the Federal Reserve to enact an interest rate cut — the first in four years — at its next meeting set for September.