Economic Watch: Retail Sales Recover Following Slump
U.S. consumers showed a new willingness to spend more money last month, an indication there may be increasing momentum in the economy.


U.S. consumers showed a new willingness to spend more money last month, an indication there may be increasing momentum in the economy.
The Commerce Department reported on Thursday that retail sales increased a broad-based 0.6% in July from the month before. A revision to June upped the previously announced 0.3% decline to no change from the month before.
May’s figure was also revised upward, from a 1% improvement to a 1.2% increase from April.
Overall July sales minus autos increased 0.4%, the third straight month showing a solid improvement. This figure is what many consider a more accurate gauge of consumers’ everyday spending habits.
It’s estimated consumer spending accounts for around 70% of all U.S. economic activity, which naturally drives a lot of truck movements.
Compared to July 2014, overall retail sales last month increased 2.4%. Last year, they had jumped 4% from the previous year.
While a welcome step in the right direction, and some reassurance the consumer isn’t dead, the July monthly increase does little to suggest the U.S. consumer is back, according to Lindsey Piegza, chief economist at the investment firm Stifel Fixed Income.
“After all, the declining trend in the annual pace of retail spending remains firmly in place, with spending slowing from a more than 4% pace in mid-2014 to 2.4% currently,” she said. “While a noticeable improvement from 1.3% reported in April, consumers have a long way to go to claw back to the more robust pace of spending reported just 12 months prior.”
Piegza pointed out that on a quarter-to-quarter basis – which is how the nation’s gross domestic product is calculated – the modest improvement in second-quarter spending was a noticeable gain from the general malaise across the first three months of the year.
“While some analysts have looked at the sizable input from spending to suggest the consumer is stronger than previously reported, and thus, the economy is stronger than previously reported, we look at the breakdown of the second quarter with more skepticism,” she said. “After all, something is needed to support consumer spending going forward, particularly business investment and development. Unfortunately, at this time, businesses continue to remain sidelined, hesitant to invest; non-residential business fixed investment fell 0.6% in the second quarter, an 11-quarter low.”
More Fleet Management

American Trucking Associations Looks for a New Leader
ATA President and CEO Chris Spear abruptly left his job at the association on August 21, at a pivotal time for the trucking industry.
Read More →
Public Wi-Fi Cybersecurity Risks: How Truck Drivers and Fleets Can Protect Their Data
Public Wi-Fi can expose truck drivers and fleets to credential theft, malware, and other cyber threats. Here’s how to reduce the risk on the road.
Read More →
For Nicky Cupp, Fleet Innovation Starts With Frustration
HDT Truck Fleet Innovator Nicky Cupp turns everyday pain points at Fraley & Schilling into opportunities for better technology and smarter processes.
Read More →
Adam Buttgenbach’s Approach to Electric Trucks: Start With Where They Fit
HDT Truck Fleet Innovator Adam Buttgenbach helped PepsiCo build one of North America’s largest EV fleets by focusing on where electric trucks make operational sense.
Read More →
Deen Albert: Let Automation Do the Math, People Make the Decisions
HDT Truck Fleet Innovator Deen Albert makes sure people are still at the heart of operations at Grand Island Express, even while adopting artificial intelligence tools. AI-assisted dispatch helped boost revenue 25% with the same number of trucks.
Read More →Trimble’s New AI Agent Takes Aim at Fleet Back-Office Busywork
Arc Agent works across Trimble TMS products to automate repetitive tasks such as freight orders, maintenance, invoices, fuel costs and more.
Read More →
How HDT’s 2026 Truck Fleet Innovators Are Rethinking Fleet Operations
Meet five trucking leaders who are challenging assumptions, solving operational problems, and putting innovative ideas to work.
Read More →
Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall
“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.
Read More →
Import Cargo’s Early Peak Season is Winding Down
There was an early start to peak season this year at the nation's gateway ports, as retailers brought in merchandise ahead of tariff changes in late July and responded to other supply chain uncertainties,
Read More →
Fewer Cargo Thefts, Bigger Losses: Criminals Target Higher-Value Loads
CargoNet says organized theft rings are stealing fewer shipments but choosing more valuable freight, including metals and technology, resulting in record losses.
Read More →
