The rise was less than expected for the month, suggesting a slowdown in the impulse of consumer spending activity
US retail sales increased 0.5% July, after growing 0.9% in June, revised from the previous growth of 0.6%. The data are from the Department of Commerce and were released on Friday (15.ago.2025).
US retail sales grew less than expected in July, suggesting a slowdown in the impulse of consumer spending activity before the Crucial Fed Meeting (Federal Reserve) September.
Economists had predicted that retail sales, which mainly reflect goods and are not adjusted by inflation, would grow 0.6%.
The broader number of retail sales can often be used as an indicator of the trust that US consumer has in the economy in general, which in turn can influence how the Fed addresses potential interest rates this year.
In separate disclosures, import costs increased 0.4% over the previous month in July, over 0.1% expected, while export costs rose only 0.1%, slowing 0.5% in the previous month.
The Fed has maintained its reference interest rate at the current range of 5.25% to 5.50% since last July, citing uncertainties on inflation after the imposition of tariffs by the Government of Donald Trump (Republican) on majority business partners.
This annoyed Trump, who repeatedly asked for lower rates while criticizing the cautious approach of Fed President Jerome Powell.
Weak job data earlier this month, along with a benign consumer pricing report earlier this week, led the market to prose a rate in September, particularly after US Treasury Secretary Scott Bessent suggested that the Fed should consider a robust cut of 50-rate points at the interest rate.
A hotter than expected price report on Thursday (14.ago.2025) has reduced these expectations, and although a 25-point cut is still widely expected, a larger cut has now been widely discarded.
With information from .com Brazil.
