US retail sales in July rise 0.5% on auto power

Shoppers spent at a healthy pace in July, particularly at the nation's auto dealerships, as they appear to shrug off President Donald Trump's tariffs, which are starting to take a toll on jobs and lead to some price increases.

Retail sales rose a solid 0.5% last month, and June spending was stronger than expected, according to the Commerce Department's report released Friday. June's retail sales were revised upward to 0.9%, from a 0.6% increase, the agency said. The pace in July matched estimates. The increases followed two consecutive months of spending declines - a 0.1% pullback in April and a 0.9% slowdown in May.

Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cares, retail sales rose 0.3% in July.

The data showed solid spending across many retail sectors. Business at clothing stores was up 0.7% while online retailers saw a 0.8% increase. Business at home furnishings and furniture stores rose 1.4%.