WASHINGTON – The value of retail sales rose 0.6% in July, well ahead of expectations for a 0.3% gain, and followed a sharply upwardly revised 0.3% gain in June, data released by the Commerce Department Tuesday morning shows.
Total retail sales were originally reported down 0.2% in June. May sales were also revised up and stand at flat now after being reported down 0.1% last month.
July retail sales were still up 0.5% excluding the motor vehicle component, which posted a 1.2% surge in the month after rising 0.9% in the previous month. Retail sales ex. motor vehicles rose 0.1% in June, an upward revision from the previously reported 0.2% decline
Excluding motor vehicles, gasoline, and building materials, "core" retail sales were up 0.5%. And for good measure, excluding food services as well as those three measures, retail sales were up 0.6%.
The data suggest a possible upward revision to second quarter PCE as well as a solid start to the third quarter. Incorporating the July gain and the revisions to May and June, overall July retail sales were up 3.2% at an annual rate from the second quarter average. At the same time, sales excluding motor vehicles were up 1.8% from the second quarter, while sales excluding motor vehicles, gas and building materials were up 2.6%. With food services also excluded, sales were also up 2.6%.
Building materials sales rose 1.2% in July following a 1.1% gain in June. Gasoline store sales, meanwhile, fell 0.4% in July following a 1.5% decline in June.
In addition to the motor vehicle category, there were sales gains for every other major component except for electronics and appliances (-0.5%) and clothing stores (-0.2%). Food services and drinking places were up 0.3% in July.
