Retail sales rose as many sought to beat tariffs

Shoppers made purchases, especially at car dealerships, even as prices rose.

- BY ANNE D'INNOCENZIO

A CUSTOMER shops for grain at New India Bazar, where most merchandise is imported, in Fremont, Calif.

Shoppers spent at a healthy pace in July, particularly at the nation's auto dealerships, even as President Trump's tariffs start to take a toll on jobs and lead to some price increases.

But the figures also underscore anxiety among Americans: All the uncertainty around the expansive duties appears to be pushing them to step up their purchases of furniture and other items ahead of the expected price increases, analysts said.

Retail sales rose a solid 0.5% last month from the previous month, and June spending was stronger than expected, according to the Commerce Department's report released Friday. June's retail sales were revised upward to 0.9% from the original 0.6% increase, the agency said. The pace in July matched economists' estimates.

The increases followed two consecutive months of spending declines in April and May.

Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cars, retail sales rose 0.3% in July.

Auto sales rose 1.6%. They appear to have returned roughly to normalized spending after a surge in March and April as Americans attempted to get ahead of Trump's 25% duty on imported cars and parts and then a slump after that, according to Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics.

The data showed solid spending across various stores. Business at clothing stores and online retailers saw increases. Business at home furnishings and furniture stores had strong sales gains.

However, at electronics stores, sales were down. And business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, also fell, as shoppers ate at home to save money.