July US Retail Sales Rise Less Than Expected, Ex-Auto Sales Growth Slows

08:48 AM EDT, 08/15/2025 (MT Newswires) -- US retail sales rose by 0.5% in July, a slower gain than the 0.6% increase expected in a survey compiled by Bloomberg as of 7:35 am ET and following the previous month's 0.9% increase.

Excluding a 1.6% increase in motor vehicle sales, retail sales were up 0.3%, as expected. That followed a 0.8% rise in June.

Removing both motor vehicles and a 0.7% gain in gasoline station sales, retail sales were up 0.2% in July after a 0.8% increase in June.

Sales at food services and drinking places fell by 0.4% after a 0.6% gain in the previous month while building material sales declined by 1% after a 1.3% gain.

However, there were also notable sales gains for groceries, furniture, clothing and sporting goods and at department stores.

The monthly retail sales report from the US Commerce Department measures spending on retail products and food, the largest portion of economic growth. The report covers spending on goods with a services report released later each month.

Investors watch the control group that excludes food services, autos, gasoline and building materials because it feeds directly into the GDP report measuring economic growth.

If the data shows a strong US economy, that's generally bullish for stocks and bearish for bonds.

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