US Retail Sales Expected to Grow for Second Month in July

US Retail Sales Expected to Grow for Second Month in July

The United States Census Bureau will release the Retail Sales report on Friday, with expectations pointing to a 0.5% monthly increase in July. This follows a 0.6% gain in June, indicating continued strength in consumer spending.

Analysts believe that Americans took advantage of seasonal discounts and acted ahead of potential price hikes due to rising trade tariffs. June’s unexpected rebound in spending, following a 0.9% drop in May, was driven by broad-based gains, including a 0.6% increase in retail and food services. Core sales—excluding automobiles—also rose by 0.5%.

Despite the positive retail outlook, these figures are unlikely to shift the broader market expectation that the Federal Reserve will initiate a rate cut in September. Recent soft inflation data have further reinforced these bets, triggering a risk-on sentiment that continues to pressure the US Dollar ahead of the data release.