Despite the pressure of higher prices and elevated interest rates, which have weighed on consumer budgets throughout the year, the latest July data reveals a surprisingly resilient spending trend. Retail sales surged 1% from June to July, marking the largest jump since January 2023 and a sharp rebound from earlier declines.
That being said, while Roth MKM analysts currently maintain a cautious “underweight” position on the retail sector, the firm noted that the latest monthly sales data, alongside a stronger-than-expected Q2 earnings report from sector giant Walmart (WMT), have sparked a notable boost in the S&P Retail SPDR (XRT).
