Clothing Stores NAICS 458110

Aug 25, 2025 - Solid Growth in July

• Clothing and accessories store sales grew 6.7% unadjusted year over year in July 2025, supported by consumer spending ahead of expected tariffs, according to the CNBC/NRF Retail Monitor released by the National Retail Federation. The category was up 1.7% seasonally adjusted month over month. Total retail sales, excluding automobiles and gasoline, increased 5.8% unadjusted year over year in July 2025 and 1.4% seasonally adjusted month over month. Eight out of nine retail categories were higher in July compared to a year ago, led by digital products, sporting goods stores, general merchandise stores, and clothing and accessories stores. According to NRF President and CEO Matthew Shay, “Consumer spending increased in July, driven by successful summer sales events held by many retailers and shoppers continuing to pull purchases forward ahead of tariffs.” The CNBC/NRF Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions.
• Indicators measuring the collective mood of US consumers show mixed signals, with consumer confidence levels slightly up and consumer sentiment falling. Consumer confidence levels, an indicator of discretionary expenditures, improved in July 2025, month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.6 in preliminary August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• Back-to-school shopping is inching earlier, with 67% of respondents shopping in early July 2025 compared to 55% in 2024, according to an annual back-to-school survey released by the National Retail Federation and Prosper Insights and Analytics. The top destinations for back-to-school shopping include online (55%), department stores (48%), discount stores (47%), and clothing stores (41%). Half of back-to-school families report shopping earlier this year, out of concern that prices will increase due to tariffs. According to the survey, “Consumers are being mindful of the potential impacts of tariffs and inflation on back-to-school items, and have turned to early shopping, discount stores and summer sales for savings on school essentials.” The survey estimates that total US back-to-school spending for families with students aged elementary through high school will reach $39.4 billion, up from $38.8 billion last year.
• The Retail Trade Industry is one of 11 industries reporting growth in July’s Services ISM Report on Business. Executives in the Retail Trade industry reported an increase in business activity, prices paid for materials and services, employment, and inventories, along with faster supply deliveries and a decrease in order backlogs in July. Additional industries reporting growth during the period were Transportation & Warehousing; Wholesale Trade; Finance & Insurance; Other Services; Management of Companies & Support Services; Public Administration; Real Estate, Rental & Leasing; Information; Utilities; and Health Care & Social Assistance. Seven industries reporting contraction during the period were Accommodation & Food Services; Construction; Mining; Educational Services; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; and Professional, Scientific & Technical Services. Overall, economic activity in the services sector grew in July for the second consecutive month, with the Services PMI registering 50.1%.