Consumer Spending Defies Inflation

Consumer spending remained resilient in July as inflation cooled, leading to stronger-than-expected retail sales performance, according to the Commerce Department. The advanced retail sales report indicated a seasonally adjusted increase of 0.7% for the month, surpassing the Dow Jones estimate of 0.4%. Online retailers saw a 1.9% surge in spending, while categories like sporting goods, food service, and bars also experienced gains, while furniture and electronics sales declined. Despite multiple rate increases, consumer spending remained strong, with some turning to credit cards as savings declined.