The fact that US retail sales in July surpassed the projections of Wall Street analysts is a testament to the resilience of American consumers and their capacity to continue to surprise industry experts.
The 0.7% increase in retail sales in July was 0.4% more than predicted by financial experts on Wall Street. Sales increase of 1.0% excluding vehicles and gasoline were even more spectacular, beating Bloomberg's projections by 0.3%. Meanwhile, June's numbers were raised up from 0.2% to 0.3%.
The United States Department of Commerce has released a review that summarizes consumer spending as the economy continues to perform above forecasts. In light of this, the predicted economic downturn may or may not happen.
Nine out of the thirteen categories included in this report revealed an increase in monthly sales. Since June, revenue at companies that do not own physical stores, such as online retailers, has increased by 1.9%.
The month of July is notable for events such as Amazon Prime Day and for huge online discounts offered by retailers such as Target. These factors contributed to a 10.3% rise in retail sales when compared to the same time a year earlier.
During the same time period, sales in the food service and food establishments industry climbed by 1.4%, while the sports goods and hobby goods sector recorded growth of 1.5% in comparison to sales in June.
However, sales of electronics and home appliances fell by 1.3% and sales of furniture and interior items fell by 1.8%.
In the context of consumer behavior statistics, the report's release on Tuesday was a major event as major retailers gear up to report on their performance for the second quarter.
The world's largest home improvement retailer Home Depot reported once more on Tuesday morning that they had seen a slowdown in customer spending on major goods.
"While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories," said Ted Decker, Home Depot CEO in the company's earnings report.Login in Personal Account