Americans are spending steadily despite tariffs, economic fears

US retail sales rose a healthy 0.5% in July, the Commerce Department said on Friday. Sales were up 0.9% in June, showing that Americans spent strongly this summer despite concerns about tariffs and economic uncertainty.

The data shows that car dealerships and furniture stores saw sales climb 1.6% and 1.4%, while online sales jumped 0.8%, boosted by Amazon Prime Day. Spending at gas stations and department stores also increased.

Some categories fell, like home improvement stores (-1%), electronics (-0.6%), and restaurant and bars (-0.4%).

Analysts say that unemployment remaining at lower levels, at 4.2%, is fueling consumer spending, as people are receiving steady paychecks.

However, economists warn that tariff pressures could still push prices higher in the months ahead, testing how long consumer and business resilience can last.