Retail sales continue to trend upward, driven by back-to-school shopping. New July figures from CNBC/NRF Retail Monitor, powered by Affinity Solutions, show significant growth in July. 

“July’s data reflects what we are seeing across the economy, that while consumers remain cautious, they are still spending on essentials when they find value,” NRF president and CEO Matthew Shay said. “Labor market trends have softened recently and interest rates remain high, but economic fundamentals are intact and inflation has fallen to nearly zero for goods even though prices for services are elevated.” 

According to the Retail Monitor, total retail sales, excluding automobiles and gasoline, rose 0.74 percent seasonally adjusted month over month and 0.92 percent unadjusted year over year in July. 

Core retail sales increased by 0.95 percent month over month and 1.69 percent year over year, down slightly from June figures. 

Experts believe the July increase resulted from retailers holding special promotion day events both in-store and online that have helped boost summer sales in recent years. Overall sales rose 2.1 percent year over year for the first time in seven months, according to the Retail Monitor, while core sales increased 2.4 percent. 

“July sales were likely bolstered by back-to-school and back-to-college spending, which was reflected in gains for retailers selling everything from clothing and crayons to computers and dorm room furnishings,” said Shay.

July sales were up in six out of nine retail categories on a yearly basis, led by online sales, health, and personal care stores and clothing and accessories stores.

Online and other non-store sales increased 0.82 percent month over month seasonally adjusted and up 18.45 percent year over year unadjusted. 

Health and personal care stores rose 1.75 percent month over month seasonally adjusted and up 9.68 percent year over year unadjusted. 

Clothing and accessories stores were up 0.57 percent month over month seasonally adjusted and up 5.27 percent year over year unadjusted. 

General merchandise stores were up 1.27 percent month over month seasonally adjusted and up 1.13 percent year over year unadjusted.

Sales fell in the electronics and appliance store sector by 0.53 percent month over month, seasonally adjusted, and down 1.97 percent year over year unadjusted.