US Retail Sales Up in July, Says NRF

RAPAPORT... US retail sales increased in July, as consumers continued tospend despite fears over the escalating trade war. Total purchases - excluding automobiles, gasoline andrestaurants - rose 0.4% over June sales and 4.9% year on year, accordingto data the National RetailFederation (NRF) reported, citing the US Census Bureau. Online and other non-store sales climbed 11.3% year on year,the NRF noted. "[The] numbers mirror the economy, which is in very goodshape," NRF chief economist Jack Kleinhenz said last week. "Consumerfundamentals remain healthy and continue to provide wherewithal for consumersto drive domestic economic growth." The positive trend was also noted in the earnings reports of various department stores for the second quarter, which closed at the end of July, with jewelry listed among the growth products. "The retail environment remained strong in the first half ofthe year," said Jeff Gennette, Macy's CEO. "Sales were buoyed by strong consumersentiment and good spending across all retail categories." Comparable-storesales -for locations open more than a year - were up 0.5% year on year in the secondquarter at Macy's, with the strongest growth in the fine jewelry, fragrances,active, dresses, kids', men's, luggage and furniture categories. July comparable sales were ahead of J.C. Penney's originalforecast, rising 0.3% year on year in the second quarter, Jeffrey Davis, thecompany's chief financial officer said. Children's, jewelry, Sephora, women'sapparel and salon were the top performing divisions, Davis added. The NRF recently revised its annual forecast for 2018. Theorganization now expects retail sales for the year to grow at least 4.5% over2017, rather than its original prediction of 3.8% to 4.4% growth. However, future spending may be affected if tariffs escalate,noted Kleinhenz.