U.S. retail spending in July exceeded expectations as consumers spent heavily on Prime Day

It is learned that according to foreign media reports, US retail sales increased in mid-summer, driven by multiple promotional activities of retailers (including Amazon Prime Day).

Retail sales in July were up 1% from June and 3.2% from a year ago, according to the National Retail Federation. Online sales in July rose 1.9% to $12.7 billion, driven by Amazon Prime Day.

The U.S. Census Bureau reported that retail sales in July increased 0.7% month-on-month to $696.4 billion, exceeding market expectations of 0.4% and marking the largest increase in six months. In addition, the increase in July was twice that of June (sales in June increased 0.3% month-on-month).

NRF Chief Economist Jack Kleinhenz said that due to the active participation of consumers in the promotional activities launched by retailers, retail sales in July showed a significant increase compared with the previous month. The data showed that under the current high interest rates and tight credit conditions, US consumer demand remains strong and the US economy remains resilient.

David Silverman, senior director at Fitch Ratings, commented that U.S. consumers continued to spend on goods amid a summer boom in European travel and concerts. As signs of a recession diminish, retail sales are expected to continue to grow modestly, but sales will still fluctuate.

Data showed that retail sales increased in all categories except electronics/appliance stores and furniture/home furnishings in July compared with June. Sales increased in five of the nine retail categories compared with the same period last year.

Here is how each industry performed in July:

-Online and other non-store sales increased by 1.9% month-on-month and 11.8% year-on-year.

-Sales of health and personal care products increased by 0.7% month-on-month and 8.3% year-on-year.

-Sales of general merchandise increased by 0.8% month-on-month and 1.6% year-on-year.

-Sales of groceries and beverages increased 0.8% month-on-month and 1.5% year-on-year.

- Sales of apparel and accessories increased 1% month-on-month and 0.9% year-on-year.

-Sales of sporting goods increased by 1.5% month-on-month and decreased by 0.5% year-on-year.

-Sales of building materials and gardening supplies increased by 0.7% month-on-month and decreased by 3.5% year-on-year.

-Sales of electronic products and appliances fell 1.3% month-on-month and 3.5% year-on-year.

-Sales of furniture and home furnishings fell 1.8% month-on-month and 7.6% year-on-year.

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