Despite solid US retail sales in July, some analysts expect weakening later in the year as the labor market loses steam and additional tariff effects are felt Patrick T. Fallon

US retail sales rose moderately in July, according to data released Friday, as markets monitor tariffs that do not so far appear to have significantly battered consumers.

Overall sales

Analysts described the report as solid, but some pointed to a greater risk of weakening in retail sales in the second half of 2025 following disappointing recent labor market data. Consumer spending is a major driver of the world's biggest economy.

"This report will ease some of the worries about the health of consumers' spending following the tariff shock," said a note from Oliver Allen, senior US economist at Pantheon Macroec

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