NRF: July retail sales slow amid tight supply chain

Retail sales slowed during July as retailers continued to face supply-chain disruptions and increased COVID-19 vaccinations that prompted consumers to shift some spending from goods to activities like going out to dinner and traveling despite the delta variant, according to the National Retail Federation.

"July retail sales showed slight deceleration in spending, but nothing to derail our outlook for a record year," said NRF President and Chief Executive Officer Matthew Shay in a news release. "Though the delta variant [of the virus] is presenting health challenges while supply chain disruptions along with unfilled job openings are presenting business challenges, the consumer and broader economy continue to display steady strength aided by advanced tax credit payments and strong gains in the labor market and personal incomes."

The shift to spending on services was expected as more of the economy reopened, and this year's move of the Amazon Prime Day promotion to June may have siphoned off some sales that normally come in July, the release said.

The U.S. Census Bureau recently announced overall retail sales in July were down 1.1% seasonally adjusted from June but up 15.8% year-over-year. That compares with an increase of 0.7% month-over-month and an increase of 18.7% year-over-year in June. Despite occasional month-over-month declines, sales have grown year-over-year every month since June 2020, according to census data.