The data, which generated a mixed report card of the US economy, has been showing resilience both in the face of high inflation and signs of trouble. Consumers are continuing to spend, and applications for the unemployment benefits still remain low.
The housing market in the United States is deteriorating fast, while the manufacturing industry is losing momentum, but not as quickly as it has been feared. The retail sales except motor vehicles and gasoline has increased by 0.7 percent in the month of July 2022, and the outlays increased at a range of merchants including electronic and appliances stores, building-materials outlets, and online retailers.
The data also suggests that the backbone of the economy is largely holding up in the face of the fastest inflation in a generation. However, this spending mix appears to have changed to more essential goods as inflation forces shoppers to pay more for basic items, and people are also spending more on services such as travel.
Big retailers such as Target Corp. and Walmart are getting ready for a healthy shopping season after the sharp cuts in prices on things such as kitchen appliances and apparel in recent months that have reflected a swift change in consumer preferences.