Pre-Aug 1 Tariff Buying Likely Boosted July Retail Sales

Figure 1. Real Retail Sales Start Q3 on High Note

Sources: The Census Bureau and The Conference Board.

Trusted Insights for What’s Ahead^®

• The Census Bureau’s nominal retail and food services sales increased by one-half percentage point in July, led by a surge in auto sales, which were up 1.7 percent.
• According to the Bureau of Economic Analysis, light weight vehicle sales jumped by 7 percent in the month, with a large increase in sales of foreign vehicles.
• Nominal retail sales were also healthy away from autos, with broad gains across several categories.
• While the report bodes well for Q3 goods consumption, sales at restaurants and bars were down suggesting discretionary services may have been poor.
• The strength in goods may re