US Retail Sales Rise in July, But Weak Job Market Threatens Spending Outlook

WASHINGTON, Aug 18 — U.S. retail sales rose in July, supported by robust motor vehicle demand and promotional campaigns from major retailers such as Amazon and Walmart. Sales grew by 0.5% month-on-month, slightly softer than June’s 0.9%, with annual growth moderating to 3.9% from 4.4%. Strong gains came from motor vehicles and furniture, while declines were recorded at miscellaneous retailers and building material stores. The control group, which better reflects underlying consumer trends, also climbed 0.5%. However, consumer sentiment fell to 58.6 in August, the first decline in four months, reflecting inflation worries and weaker job prospects. Meanwhile, industrial production grew 1.4% year-on-year but slipped 0.1% from June as mining and utilities slowed. Economists warned that while consumer spending remains resilient, a softening labor market, rising tariffs, and accelerating inflation could erode disposable incomes and dampen demand in the coming months.