July retail sales stronger than expected

Driven by back-to-school spending on electronics, apparel and other necessities, July retail sales rebounded from a slow start to the summer. According to the National Retail Federation, retail industry sales for July (which exclude automobiles, gas stations, and restaurants) rose a solid 4.0% unadjusted over last year and 0.5% seasonally adjusted from June.  June retail sales were also revised up from 3.4% to 3.8%.

July retail sales released by the Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.3% seasonally adjusted from last month and 3.1% unadjusted year-over-year.

"Back-to-school shopping sprees and summer clearance promotions drove consumers to department and specialty stores in July," stated NRF Chief Economist Rosalind Wells. "While concerns of a housing market slump and high gas prices still weigh heavily on consumers' minds, many people still hit the stores last month, giving retailers a nice rebound from earlier this summer."

While apparel sales were expected to remain flat this summer during the essential back-to-school shopping season, seasonally adjusted month-to-month sales show clothing and clothing accessories increased 1.3% from June and 4.1% unadjusted year-over-year.

New mp3 players, laptops and other electronic must-haves also helped boost July sales. Electronics and appliance stores sales increased 1.0% seasonally adjusted from last month and 2.5% unadjusted year-over-year.

Health and personal care stores did surprisingly well, increasing 0.7% seasonally adjusted month-to-month and 6.3% unadjusted over last July. General merchandise stores sales increased 0.9% seasonally adjusted from June and 4.7% unadjusted year-over-year. Sporting goods, hobby, book and music stores sales increased 0.4% seasonally adjusted from June and a solid 5.6% unadjusted year-over-year.

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