In July 2025, U.S. retail sales rose by 0.5%, representing the second consecutive monthly gain, driven partly by consumers preemptively spending to avoid anticipated price hikes from tariffs. Auto sales surged by 1.6% as buyers aimed to purchase before expected increases, suggesting potential future sales slumps. Overall sales modestly increased by 0.3%, largely attributed to the influence of Amazon Prime Day. The broader economy continues to grow slowly, with economic forecasts indicating that tariff-induced inflation may hinder overall growth, leading analysts to suggest potential interest rate cuts, though July's growth lessened the urgency for such actions.
In July 2025, U.S. retail sales rose 0.5%, driven by consumer spending to avoid higher tariff-related prices. Auto sales rose 1.6%, as buyers rushed before tariffs.
Overall sales increased 0.3%, with Amazon Prime Day contributing significantly. The economy is expanding slower, and tariff-related inflation is expected to weigh on growth.
Analysts expect the Federal Reserve may cut interest rates soon, but July's spending numbers have reduced the urgency for immediate action.
Tariffs have transformed international trade, affecting prices across industries, with retail and automotive sectors facing significant impacts as costs pass on to consumers.
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