U.S. July retail sales rise 0.5% as autos lead gains

U.S. retail sales grew modestly in July, signaling that consumer spending remained resilient even as tariff-related cost pressures and a softer labor market fed concerns about the economy’s footing. Total retail and food service sales rose 0.5 percent from June to a seasonally adjusted level of about $726.3 billion, with auto dealers leading the gain and several discretionary categories posting solid increases. Excluding autos, which have been volatile amid trade policy changes, sales advanced 0.3 percent.

Auto sales climbed 1.6 percent in July, reflecting a rebound after a March-to-April surge that traders associated with pre-tariff buying and a subsequent slowdown. Other sectors also showed strength: clothing and accessories stores rose roughly 0.7 percent, online retailers and e-commerce activity posted about a 0.8 percent uptick, and furniture and home furnishings stores surged around 1.4 percent. By contrast, electronics and appliance stores slipped about 0.5 to 0.6 percent, and restaurants or food services and drinking places declined for the month, suggesting consumers were shifting toward cost-saving at-home consumption in the face of higher imported prices and...