WASHINGTON — U.S. retail sales rose for a 10th consecutive month in July, as consumers leaned on midsummer promotions and early back-to-school sales to keep spending despite a mixed economic backdrop, according to data released Monday by the National Retail Federation.
Total retail sales, excluding automobile dealers and gasoline stations, climbed 0.32% month over month on a seasonally adjusted basis and were up 5.15% year over year, according to the CNBC/NRF Retail Monitor, which is powered by Affinity Solutions. The pace of monthly growth was roughly in line with June's 0.33% gain, though the annual comparison cooled from June's 9.41% increase.
Core retail sales — which also strip out restaurant spending — rose 0.3% month over month and 4.72% year over year in July, compared with gains of 0.36% and 10.08%, respectively, in June.
For the first seven months of 2026, total sales are up 6.57% year over year, with core sales up 6.53%.
"Retail sales maintained their steady upward momentum in July as consumers kept shopping despite ups and downs in other economic indicators," NRF President and CEO Matthew Shay said in a statement. "Supported by a low unemployment rate and steady wage gains, households remained budget conscious but took full advantage of midsummer sales and early back-to-school promotions to stretch their dollars."
Unlike the Census Bureau's survey-based retail figures, the Retail Monitor is built on anonymized credit and debit card transaction data, which NRF says allows the numbers to stand without the monthly or annual revisions typical of survey data.
Electronics, Digital Goods and Health Categories Lead Gains
Growth was broad-based in July, with sales rising in seven of nine categories tracked year over year and five of nine month over month. Electronics and appliance stores, digital products, and health and personal care stores posted the strongest annual gains.
Electronics and appliance stores led all categories with a 12.04% jump in unadjusted sales from a year earlier, even as monthly sales dipped 0.05%. Digital products — a category that includes e-books and video games — rose 12.02% year over year and 1.21% month over month, the strongest combined performance among all sectors tracked.
Health and personal care stores climbed 10.07% year over year and 0.53% month over month, while general merchandise stores rose 8.3% annually and 0.47% monthly. Clothing and accessories stores were up 6.55% year over year and 0.51% month over month, and grocery and beverage stores gained 4.52% annually and 0.46% monthly.
Furniture and home furnishings stores posted a more modest 2.71% annual increase despite a slight 0.04% monthly dip.
Two categories lagged the broader trend. Building and garden supply stores fell both monthly (-0.17%) and annually (-1.2%), while sporting goods, hobby, music and book stores declined 0.47% month over month and 3.01% year over year — the only two sectors to post annual declines.
NRF, which bills itself as the leading voice for the retail industry, publishes the Retail Monitor data monthly and separately issues annual forecasts for retail spending, including during the holiday season.
