July Retail Sales Rise Less Than Expected Amid Declines in Building Materials, Electronics

10:49 AM EDT, 08/15/2025 (MT Newswires) -- US retail sales rose less than projected in July amid declines in purchases of building materials and electronics, data from the Census Bureau showed Friday.

Sales increased 0.5% last month sequentially following an upwardly revised 0.9% rise in June, according to the Census Bureau. The consensus compiled by Bloomberg called for a 0.6% increase in July.

On annual basis, retail sales rose 3.9%, marking a slowdown from a 4.4% jump in June.

Spending on building materials and garden equipment fell 1% month on month after a 1.3% increase in June. Electronics and appliances fell 0.6%, while sales at food services and drinking places turned negative.

Purchases of motor vehicles and parts increased 1.6%, faster than a 1.4% rise in June, government data showed. Spending at food and beverages stores and gasoline stations rose.

"The downward revisions to the payroll data have grabbed a lot of attention lately, but this data shows that the consumer remains in very good shape overall, despite a slower pace of job growth," Thomas Simons, chief US economist at Jefferies, said in a report.

At the start of the month, Bureau of Labor Statistics data showed that the US economy added fewer jobs than projected in July, while gains in the previous two months were revised sharply lower.

Recent data showed that producer prices rose at the fastest pace in about three years last month, while consumer inflation in the world's largest economy slowed down on a sequential basis.

Markets widely expect the Federal Reserve to cut interest rates by 25 basis points at next month's policy meeting, according to the CME FedWatch tool.

"Although labor market conditions are softening, the mighty consumer continues to showcase resiliency," BMO Capital Markets Senior Economist Priscilla Thiagamoorthy said in a note. "That, combined with still-stirring price pressures, will keep Fed officials cautious."

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