America's consumer's boost Retail Spending, which surged in July
WASHINGTON, D.C. (Texas Insider Report) — Retail spending was robust in July, as consumers snapped up summer sales and wages grew above the rate of inflation, says The Retail Monitor's latest report released earlier today. The Retail Monitor said that "core retail sales" – which excludes restaurant, car and gas purchases – were up nearly 6% year over year, and total sales were up 4.83% year over year for the first seven months of 2025.
Another ky economic number, the latest Consumer Price Index, will be released tomorrow, and should give the U.S. economy a sense of which direction prices are heading.
Inflation has been tame this year – despite all the doomsday predictions of a recession or major fallout from Mr. Trump’s trade and tariff negotiations agenda – and the robust July data came in the face of a blanket 10% tariff on imports that have been in place for months.
On Thursday, the president imposed tariffs ranging between 15% and 41% on more than 67 countries, raising levies to their highest levels in over a century. He’s solidified the 10% blanket tariff on all imports and is implementing the 15% rate he negotiated with places like the European Union, Japan and South Korea.
Tariffs have raised nearly $130 billion this year — well over twice the amount of tariff revenue collected at this point last year, according to the Penn Wharton Budget Model.
“Tariffs are making our Country Strong and Rich!!!” Mr. Trump wrote Monday on Truth Social.
“Tariffs are making our Country Strong and Rich!!!” Mr. Trump wrote Monday on Truth Social.
The Trump Administration is continuing to negotiate with China on a separate track from other nation-by-nation tariffs – signing another 90-day extension earlier today to extend what the countries agreed to in May to pause sky-high tariffs on either side for 90 days.
“Consumer spending increased in July, driven by successful summer sales events held by many retailers and shoppers continuing to pull purchases forward ahead of tariffs,” National Retail Federation President & CEO Matthew Shay said with the release of the CNBC/NRF Retail Monitor for July.
“Consumers still have the ability to spend on household priorities as wages are growing above the rate of inflation,” said Shay.
For now, consumers are hitting the checkout aisle.
