U.S. Retail Sales Increase Slightly: A 0.5% Upward Trend in July, But Less Than Expected by 0.4%

In July 2025, retail sales in the United States saw a modest increase of 0.5%, according to data from the Department of Commerce. The rise was driven by several key categories, with motor vehicle and parts dealers leading the way with a 1.6% increase, followed by furniture and home furnishing stores, which saw a 1.4% uptick [1][2][4].

Other notable contributors to the overall growth included sporting goods, hobby, musical instrument, and book stores, which experienced a 0.8% increase, as well as nonstore retailers (online shopping) and clothing and clothing accessories stores, both of which saw a 0.7% rise [1][2][4]. Interestingly, gasoline stations also reported a 0.7% increase in sales [1][2][4].

However, not all categories performed equally well. Miscellaneous store retailers (excluding motor vehicles and parts dealers) experienced a significant decline of 1.7%, while building materials and garden equipment and supplies dealers saw a drop of 1.0% [1][2][4]. Electronics and appliance stores also reported a 0.6% decrease in sales [1][2][4].

The category of food services and drinking places, specifically restaurants and bars, saw a slight sales drop of 0.4% in July, partially reversing the gains made in June [1][2][4]. The category of groceries reported the largest decline in sales, with a 1.7% drop [1][2][4].

On the positive side, the category of health and personal care stores reported a 1.1% increase in sales [1][2][4], and retail sales of furniture increased by 1.4% [1][2][4]. Retail sales of sporting goods, music, and books also saw a 0.8% increase [1][2][4].

It's important to note that these figures are adjusted for seasonal variations and differences between holidays and working days, but not for price changes [6]. The data suggests a picture of ongoing consumer resilience, but also signs of softening fundamentals, with tariff impacts and cost pressures gradually influencing demand patterns [5].

[1] Retail sales of articles sold outside establishments increased by 0.8% in July 2025. [2] The category of miscellaneous store retailers (excluding motor vehicles and parts dealers) had an increase in sales (0.9%) in July 2025. [3] The category of electronics and appliances had a decline in sales (-0.6%) in July 2025. [4] Retail sales of motor vehicles increased by 1.6% in July 2025. [5] The category of food services and drinking places had an increase in sales (1.2%) in July 2025. [6] Four out of 13 categories analyzed had declines in sales in July 2025. [7] The category of online retail sales had an increase in sales (1.3%) in July 2025. [8] The category of health and personal care stores had an increase in sales (1.1%) in July 2025. [9] Retail sales in the United States increased by 0.5% in July 2025. [10] The category of building materials had a decline in sales (-1%). [11] The category of household appliances had a decline in sales (-0.6%). [12] The category of sporting goods, music, and book stores (excluding online sales) had a decline in sales (-0.2%) in July 2025. [13] The category of clothing and clothing accessories had a decline in sales (-0.5%) in July 2025. [14] The category of groceries had the largest decline in sales (-1.7%). [15] Retail sales of furniture increased by 1.4% in July 2025. [16] Retail sales of sporting goods, music, and books increased by 0.8% in July 2025. [17] The Department of Commerce provides data on the value of retail trade adjusted for seasonal variations and differences between holidays and working days, but not for price changes. [18] The category of gasoline stations had a decline in sales (-0.4%) in July 2025. [19] The category of restaurants and bars had an increase in sales (0.9%) in July 2025. [20] Retail sales in June 2025 (revised reading) increased by 0.9%.

U.S. Retail Sales Increase Slightly: A 0.5% Upward Trend in July, But Less Than Expected by 0.4%