US retail sales increased for a 10th consecutive month in July 2026, although annual growth slowed sharply from June, according to the latest CNBC/NRF Retail Monitor.
Total retail sales, excluding car dealers and petrol stations, rose 0.32% on a seasonally adjusted month-on-month basis and were 5.15% higher than in July 2025.
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Core retail sales, which also exclude restaurants, increased 0.3% from June and 4.72% year on year.
The figures extend a run of retail sales growth that began in October 2025. However, annual growth was considerably lower than in June, when total retail sales increased 9.41% and core sales rose 10.08%.
Consumer spending remains resilient
The National Retail Federation (NRF) said consumers continued to support retail spending in July despite mixed economic conditions.
NRF president and CEO Matthew Shay said retail sales had maintained their “steady upward momentum”, as households remained focused on their budgets while taking advantage of midsummer discounts and early back-to-school promotions.
“Supported by a low unemployment rate and steady wage gains, households remained budget conscious,” Shay said.
Across the first seven months of 2026, total retail sales measured by the Retail Monitor were 6.57% higher than in the same period of 2025. Core retail sales increased 6.53%.
The figures come against a backdrop of elevated inflation in the US. The Consumer Price Index was 3.5% higher year on year in June, while core inflation stood at 2.6%. July inflation data are due on 12 August.
Official government data will provide another measure of consumer demand later in the week. US Census Bureau figures showed retail and food service sales reached $768.6bn in June, up 0.2% from May and 6.7% from a year earlier. The bureau is scheduled to publish its July estimate on 14 August.
Electronics and digital products lead growth
Retail performance varied considerably across categories in July, with some areas recording strong annual growth while others saw sales decline.
Electronics and appliance stores recorded the strongest annual increase among the categories tracked by the Retail Monitor, with sales rising 12.04% from July 2025. However, sales slipped 0.05% from June.
Digital products, including electronic books and games, recorded similar annual growth of 12.02% and increased 1.21% month on month.
Health and personal care store sales rose 10.07% year on year and 0.53% from June. General merchandise stores recorded annual growth of 8.3%, while clothing and accessories sales increased 6.55%.
Grocery and beverage retailers recorded more moderate growth, with sales up 4.52% year on year and 0.46% month on month.
Furniture and home furnishings sales increased 2.71% annually but slipped 0.04% from June.
Two categories recorded annual declines. Building and garden supply store sales fell 1.2% year on year and 0.17% month on month.
Sporting goods, hobby, music and book store sales declined 3.01% annually and 0.47% from June.
Overall, seven of the nine categories tracked by the Retail Monitor recorded annual sales growth, while five increased from June. The results highlight the uneven nature of consumer demand, with strong growth in areas such as electronics and health and personal care contrasting with declines in building supplies and sporting goods.
US retail sales outlook remains positive
The July figures keep US retail sales on course for another year of growth, although the slower annual increase suggests that the exceptionally strong pace recorded in June has moderated.
The NRF expects US retail sales to increase 4.4% in 2026 compared with 2025. Its forecast covers core retail sales and excludes car dealers, petrol stations and restaurants.
The organisation said average annual retail sales growth over the previous decade, excluding the pandemic period, was 3.6%.
The Retail Monitor differs from the Census Bureau’s monthly retail sales estimates because it uses anonymised credit and debit card transaction data compiled by Affinity Solutions rather than survey responses. The NRF says its monthly figures do not require subsequent revisions.
Shay said consumers had taken “full advantage of midsummer sales and early back-to-school promotions to stretch their dollars”.
The next US economic releases will provide further evidence on the strength of consumer demand. July inflation data are due on 12 August, followed by the Census Bureau’s July retail sales estimate on 14 August.
