Retail sales rise a solid 0.5% in July from June helped by rebounding auto sales

NEW YORK (AP) — Shoppers stepped up their spending in July, particularly at the nation’s auto dealerships.

Retail sales rose 0.5% last month, a slowdown from a revised 0.9% in June, according to the Commerce Department’s report released Friday.

The increases followed two consecutive months of spending declines — a 0.1% pullback in April and a 0.9% slowdown in May.

Excluding auto sales, which have been volatile since President Donald Trump imposed tariffs on many foreign-made cares. retail sales rose 0.3%.

Auto sales rose 1.6%. They appear to have returned roughly to normalized spending after a surge in March and April as Americans attempted to get ahead of Trump’s 25% duty on imported cars and parts and then a slump after that, according to Samuel Tombs, chief U.S. Economist at Pantheon Macroeconomics.

Business at clothing stores was up 0.7% while at electronics stores, sales were down 0.6%. Online retailers saw a 0.8% increase.

Washers and dryers are displayed at a retail store in Vernon Hills, Ill., Thursday, Aug. 7, 2025. (AP Photo/Nam Y. Huh)

Flat screen TVs are displayed at a retail store in Vernon Hills, Ill., Thursday, Aug. 7, 2025. (AP Photo/Nam Y. Huh)

Laptop computers are displayed at a retail store in Vernon Hills, Ill., Thursday, Aug. 7, 2025. (AP Photo/Nam Y. Huh)

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