U.S. retail sales experienced a notable rebound in July 2025, as consumers capitalized on summer discounts in anticipation of upcoming tariff hikes.
According to the CNBC/NRF Retail Monitor, clothing and accessories retailers saw a month-over-month increase of 1.75% after adjusting for seasonal variations. The unadjusted data reveals an even more encouraging trend, with a year-over-year sales growth of 6.73% in these categories.
Matthew Shay, President and CEO of the National Retail Federation (NRF), commented, “Consumer spending rose in July, fueled by successful summer sales promotions from various retailers and shoppers making purchases ahead of anticipated tariffs. The month-over-month gains were significant, especially when compared to a June that was weaker than usual.
We may be witnessing the effects of rising inflation linked to tariffs, as recent data indicates price increases in commodity goods, particularly non-durable items. Despite below-expected job growth, consumers are still managing to prioritize household spending, thanks to wages increasing at a rate higher than inflation.”
The Retail Monitor, supported by Affinity Solutions, indicated that retail sales—excluding automobiles and gasoline—grew by 1.45% on a seasonally adjusted basis from the previous month, alongside a robust 5.89% year-over-year increase for July.
This growth comes in contrast to a 3.19% year-over-year rise recorded in June.
Core retail sales, which exclude restaurants as well as automobile dealers and gas stations, also displayed positive trends, with a month-over-month increase of 1.55% in July and a significant annual rise of 5.93%.
The overall analysis for the first seven months of 2025 shows a 4.83% year-over-year increase in total sales, while core sales advanced by 5.07%.
The upward momentum was widespread across various categories, with digital products, sporting goods stores, and general merchandise retailers leading the growth.
The sporting goods sector, which includes hobby shops, music stores, and bookstores, recorded a seasonally adjusted monthly rise of 2.36% and an impressive unadjusted annual growth of 9.99%. Additionally, furniture and home furnishing stores reported gains both monthly (0.98%) and annually (1.53%).
