Retail sales climbed 0.5% in July

Washington —

Americans are still opening their wallets, boosted by low unemployment and improving consumer sentiment.

Spending at US retailers, including at restaurants and online, rose 0.5% in July, the Commerce Department said Friday. That’s down from June’s upwardly revised 0.9% gain, and in line with economists’ expectations. Retail sales are adjusted for seasonal swings, but not inflation.

Consumer sentiment plummeted in the spring as President Donald Trump carried out his erratic trade war, but Americans haven’t cut back. Consumers are still powering the US economy with their spending, which contributes about 70% of economic output.