Overall retail sales including food services & drinking places during July increased 0.6% (2.9% y/y). The rise followed upwardly-revised readings of no change and 1.2% in June and May, earlier reported as a 0.3% decline and a 1.0% gain. The July rise matched the increase in the Action Economics Forecast Survey. Sales excluding autos improved an expected 0.4% (1.7% y/y) following a like gain during June and a 1.0% May increase, revised from -0.1% and +0.8%. During the last ten years, there has been a 92% correlation between the y/y change in retail sales and the change in real GDP.

Sales in the retail control group exclude autos, gasoline, building materials & food services. They align with the consumer spending estimates in the GDP accounts. Sales in this grouping improved 0.3% (3.6% y/y) after gains of 0.2% and 0.8%, earlier reported as a 0.1% decline and a 0.7% rise.

Building materials & garden equipment sales increased 0.7% (2.2% y/y) following two months of 0.2% improvement. Light motor vehicle sales increased 1.4% (7.2% y/y) and made up June's decline. The rise compared to a 3.3% increase in unit sales of cars and light trucks.

In other discretionary spending categories, internet sales recovered 1.5% (6.9% y/y) after a 0.2% dip. Sporting goods, hobby shop, book & music store sales increased 0.9% (7.7% y/y) and more than made up a 0.3% dip. Sales of furniture & home furnishings increased 0.8% (6.6% y/y) following a 1.0% decline. Restaurant sales increased 0.7% (9.8% y/y) after a 0.5% rise and apparel store sales increased 0.4% (3.6% y/y) after a 0.9% drop. Gasoline service station sales rose 0.4% (-14.6% y/y) following two months of strong gain. To the downside, purchases at electronics & appliance stores fell 1.2% (-2.9% y/y) and reversed the June improvement. General merchandise sales were off 0.5% (+1.5% y/y) after a 0.8% rise.

In the nondiscretionary categories, health & personal care store sales rose 0.3% (3.4% y/y) following a 0.8% decrease. Food & beverage store sales remained roughly unchanged (3.3% y/y) for the second straight month.

The retail sales figures are available in Haver's USECON database. The Action Economics figures are in the AS1REPNA database.