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Shoppers spent at a healthy pace in July, particularly at the nations auto dealerships, even as President Donald Trump‘s tariffs start to take a toll on jobs and lead to some price increases. But the figures also underscore anxiety among Americans: all the uncertainty around the expansive duties appears to be pushing them to step up their purchases of furniture and other items ahead of the expected price increases, analysts said. Retail sales rose a solid 0.5% last month from the previous month, and June spending was stronger than expected, according to the Commerce Department’s report released Friday. June’s retail sales were revised upward to 0.9% from the original 0.6% increase, the agency said. The pace in July matched economists’ estimates. The increases followed two consecutive months of spending declines in April and May. Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cares, retail sales rose 0.3% in July. Auto sales rose 1.6%. They appear to have returned roughly to normalized spending after a surge in March and April as Americans attempted to get ahead of Trumps 25% duty on imported cars and parts and then a slump after that, according to Samuel Tombs, chief U.S. Economist at Pantheon Macroeconomics. The data showed solid spending across various stores. Business at clothing stores and online retailers saw increases. Business at home furnishings and furniture stores had strong sales gains. However, at electronics stores, sales were down. And business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, also fell, as shoppers eat at home to save money. A category of sales that excludes volatile sectors such as gas, cars, and restaurants rose last month by 0.5% from the previous month. The figure feeds into the Bureau of Economic Analysiss consumption estimate and is sign that consumers are still spending on some discretionary items. Tuan Nguyen, an economist at RSM US, noted the difficulty of attributing the entire July gain to resilient American shoppers given so much uncertainty surrounding the economy and tariffs. A sizable portion of the gain likely came from rising prices of imported goods under the impact of tariffs, he said. Nguyen also noted he can’t dismiss the possibility that consumers once again pulled forward their spending ahead of the August tariff deadline, taking advantage of Amazon Prime Day sales as well as competing sales from the likes of Walmart and Target. In fact, Nguyen noted the sharp rise in furniture sales, for example, appeared to indicate shoppers were trying to get ahead of the duties. There is nothing fundamentally wrong with American households that would suggest a spending recession given that shoppers are in a strong enough financial position to accelerate purchases, he wrote. “With so much noise in the data, the rest of the year promises to be a wild and bumpy ride. Earlier this month, the Labor Department reported that U.S. hiring is slowing sharply as Trumps trade policies paralyze businesses and raise concerns about the outlook for the worlds largest economy. U.S. employers added just 73,000 jobs last month, the Labor Department reported, well short of the 115,000 expected. Another government report, issued Tuesday, on U.S. inflation showed that inflation was unchanged in July as rising prices for some imported goods were offset by declining gas and grocery prices, leaving overall prices modestly higher than a year ago. Consumer prices rose 2.7% in July from a year earlier, the same as the previous month and up from a post-pandemic low of 2.3% in April. On a monthly basis, prices rose 0.2% in July, down from 0.3% the previous month, while core prices ticked up 0.3%, a bit faster than the 0.2% in June. The new numbers suggest that slowing rent increases and cheaper gas are offsetting some impacts of Trumps sweeping tariffs. Many businesses are also likely still absorbing much of the cost of the duties. The consumer price figures likely reflect some impact from the 10% universal tariff Trump imposed in April, as well as higher duties on countries such as China and Canada. But that may change. U.S. wholesale inflation soared unexpectedly last month, signaling that Trumps taxes are pushing costs up and that higher prices for consumers may be on the way. The Labor Department reported Thursday that its producer price index which measures inflation before it hits consumers rose 0.9% last month from June, biggest jump in more than three years. The report comes as major retailers like Walmart and Target are slated to report their fiscal second-quarter earnings reports starting next week. Analysts will study the reports to get insight into the state of consumer behavior. But they will also monitor how much stores are passing on the tariffs costs to shoppers. In May, Walmart, the nations largest retailer, warned t hat it had increased prices on bananas imported from Costa Rica from 50 cents per pound to 54 cents, but it noted that a large sting for shoppers wouldn’t start to appear until June and July. But a growing list of companies including Procter & Gamble, e.lf. Cosmetics, Black & Decker and Ralph Lauren told investors in recent weeks that they plan to or have already raised prices. Some are trying to be selective and focusing on raising prices on just their premium products as a way to offset the higher costs from tariffs. Warby Parker, which has been shifting their sourcing away from China, told analysts last Thursday that it plans to keep its $95 option. But its increasing prices on select lens types. It also wants to cater more to older shoppers who need more expensive progressive lens. Warby Parker said that progressives, trifocals and bifocals make up roughly 40% of all prescription units sold industrywide. But just 23% of Warby Parkers business now is made up of progressives, its highest priced offering and offer the highest profit margins. We were able to quickly roll out select strategic price increases that have benefited our growth, Neil Blumenthal, co-chairman and co-founder and co-CEO of Warby Parker, told analysts last week. Anne D’Innocenzio, AP retail writer
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E-Commerce
China’s economy showed signs of slowing in July as factory output and retail sales slowed and housing prices dropped further, according to data released Friday.Uncertainty over tariffs on exports to the United States is still looming over the world’s second-largest economy after President Donald Trump extended a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May.As officials worked toward a broader trade agreement, China reported earlier that its exports surged 7.2% in July year-on-year, while its imports grew at the fastest pace in a year, as businesses rushed to take advantage of the truce in Trump’s trade war with Beijing.But that also reflected a lower base for comparison, and manufacturers have slowed investments, hiring and production as they watch to see what comes. Chinese manufacturers also have ramped up shipments to Southeast Asia, Africa and other regions to help offset lost business in the U.S.“Exports remained a bright spot although the boost from front-loading appears to be tapering off and has started to show up in weak industrial production, as we anticipated,” Oxford Economics’ Sheana Yue wrote in a report.China also has been enduring flooding from torrential seasonal rains that have disrupted business activity in many parts of the country.The statistics bureau’s report said the economy had shown “notable resilience and vitality against the complex and volatile external environment and adverse impacts from extreme domestic weather.”Annual growth in industrial output slowed to 5.7% in July from 6.8% in June, the National Bureau of Statistics said. That was an 8-month low.Investments in factory equipment and other fixed assets rose a meager 1.6% in January-July, compared with 2.8% growth in the first half of the year.“Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year,” Lynne Song of ING Economics said in a report.Property investments plunged 12% in the first seven months of the year, with residential housing investment dropping nearly 11%.Prices for newly built housing in major cities fell 1.1%, as a prolonged downturn in the property industry lingered.Yue of Oxford Economics said prices could continue to fall before stabilizing in 2028.The meltdown in the housing market hit just as the COVID -19 pandemic began, sapping one of the economy’s main drivers of growth and causing dozens of developers to default on their debts.The crisis rippled throughout the economy, destroying jobs for millions of people.The government has sought to ensure that most housing that was paid for gets built, but sales remain weak despite a series of moves meant to entice families into back into the market.Since most Chinese families have their wealth tied up in property, the anemic housing market has been a major factor crimping consumer spending. In July, retail sales rose 3.7%, the slowest rate in seven months and down from a 4.8% increase in June.The unemployment rate rose to 5.2% from 5% as university graduates began looking for work.While consumer prices rose 0.4% in July from the month before, prices at the wholesale level slipped 3.6% from a year earlier in another indicator of relatively weak demand. Shihuan Chen in Beijing contributed to this report. Elaine Kurtenbach, AP Business Writer
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E-Commerce
A senior lawyer in Australia has apologized to a judge for filing submissions in a murder case that included fake quotes and nonexistent case judgments generated by artificial intelligence.The blunder in the Supreme Court of Victoria state is another in a litany of mishaps AI has caused in justice systems around the world.Defense lawyer Rishi Nathwani, who holds the prestigious legal title of King’s Counsel, took “full responsibility” for filing incorrect information in submissions in the case of a teenager charged with murder, according to court documents seen by The Associated Press on Friday.“We are deeply sorry and embarrassed for what occurred,” Nathwani told Justice James Elliott on Wednesday, on behalf of the defense team.The AI-generated errors caused a 24-hour delay in resolving a case that Elliott had hoped to conclude on Wednesday. Elliott ruled on Thursday that Nathwani’s client, who cannot be identified because he is a minor, was not guilty of murder because of mental impairment.“At the risk of understatement, the manner in which these events have unfolded is unsatisfactory,” Elliott told lawyers on Thursday.“The ability of the court to rely upon the accuracy of submissions made by counsel is fundamental to the due administration of justice,” Elliott added.The fake submissions included fabricated quotes from a speech to the state legislature and nonexistent case citations purportedly from the Supreme Court.The errors were discovered by Elliott’s associates, who couldn’t find the cases and requested that defense lawyers provide copies.The lawyers admitted the citations “do not exist” and that the submission contained “fictitious quotes,” court documents say.The lawyers explained they checked that the initial citations were accurate and wrongly assumed the others would also be correct.The submissions were also sent to prosecutor Daniel Porceddu, who didn’t check their accuracy.The judge noted that the Supreme Court released guidelines last year for how lawyers use AI.“It is not acceptable for artificial intelligence to be used unless the product of that use is independently and thoroughly verified,” Elliott said.The court documents do not identify the generative artificial intelligence system used by the lawyers.In a comparable case in the United States in 2023, a federal judge imposed $5,000 fines on two lawyers and a law firm after ChatGPT was blamed for their submission of fictitious legal research in an aviation injury claim.Judge P. Kevin Castel said they acted in bad faith. But he credited their apologies and remedial steps taken in explaining why harsher sanctions were not necessary to ensure they or others won’t again let artificial intelligence tools prompt them to produce fake legal history in their arguments.Later that year, more fictitious court rulings invented by AI were cited in legal papers filed by lawyers for Michael Cohen, a former personal lawyer for U.S. President Donald Trump. Cohen took the blame, saying he didn’t realize that the Google tool he was using for legal research was also capable of so-called AI hallucinations.British High Court Justice Victoria Sharp warned in June that providing false material as if it were genuine could be considered contempt of court or, in the “most egregious cases,” perverting the course of justice, which carries a maximum sentence of life in prison. Rod McGuirk, Associated Press
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E-Commerce
World shares are generally higher after most stocks on Wall Street fell following a disappointing report that said inflation was worse last month at the U.S. wholesale level than economists had expected.The future for S&P 500 gained 0.2% while that for the Dow Jones Industrial Average went up 0.8%. Meanwhile, oil prices slipped.In early European trading, Germany’s Dax rose 0.4% to 24,479.85. Britain’s FTSE 100 was down less than 0.1%. In Paris, the CAC 40 added 0.7% to 7,924.10.China reported data showing its economy was feeling pressure from higher U.S. tariffs in July, while property investments fell further.Retail sales rose 3.7% year-on-year, down from 4.8% in June, while investments in factory equipment and other fixed assets rose a meager 1.6%, compared with 2.8% growth in January-June.Uncertainty over tariffs on exports to the United States is still looming over manufacturers after President Donald Trump extended a pause in sharp hikes in import duties for 90 days following a 90-day pause that began in May.The Shanghai Composite index added 0.8% to 3,696.77, but Hong Kong’s Hang Seng index fell 1.2% to 25,216.45.“Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year. After a strong start, several months of cooling momentum suggest that the economy may need further policy support,” ING Economics said in a market commentary.In Japan, the Nikkei 225 gained 1.7% to 43,378.31 after the government reported that the economy grew at a 1% annual pace in the April-June quarter. That was better than analysts had expected.Elsewhere in Asia, Australia’s S&P/ASX 200 rose 0.7% to 8,938.60. Taiwan’s TAIEX gained 0.4% while India’s BSE Sensex edged 0.1% higher.Attention later Friday will likely focus on an update on U.S. retail sales and on a meeting between U.S. President Donald Trump and Russian President Vladimir Putin.On Thursday, seven out of every 10 stocks within the S&P 500 fell, though the index edged up by less than 0.1% to set another all-time high. The Dow Jones Industrial Average dipped 11 points, or less than 0.1%, and the Nasdaq composite fell less than 0.1% from its record set the day before.The inflation report said that prices jumped 3.3% last month at the U.S. wholesale level from a year earlier. That was well above the 2.5% rate that economists had forecast, and it could hint at higher inflation ahead for U.S. shoppers as higher costs make their way through the system.The data led traders to second guess their widespread consensus that the Federal Reserve will cut interest rates at its next meeting in September. Lower rates can boost investment prices and the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment, but they also risk worsening inflation.Higher interest rates drag on all kinds of companies by keeping the cost to borrow high. They can hurt smaller companies in particular because they often need to borrow to grow. The Russell 2000 index of smaller U.S. stocks tumbled a market-leading 1.2%.Thursday’s disappointing data followed an encouraging update earlier in the week on prices at the consumer level. A separate report on Thursday, meanwhile, said fewer U.S. workers applied for unemployment benefits last week. That’s a good sign for workers, indicating that layoffs remain relatively low at a time when job openings have become more difficult to find.But a solid job market could also give the Fed less reason to cut interest rates in the short term.Big Tech stocks helped mask Wall Street’s losses. Amazon rose 2.9% to add to its gains from the prior day when it announced same-day delivery of fresh groceries in more than 1,000 cities and towns.Because Amazon is so huge, with a market value of $2.45 trillion, the movements for its stock carry much more weight on the S&P 500 than the typical company’s.In other dealings early Friday, U.S. benchmark crude lost 8 cents to $63.88 per barrel. Brent crude, the international standard, fell 11 cents to $66.73 per barrel.The dollar edged lower to 146.86 Japanese yen from 147.20 yen. The euro rose to $1.1682 from $1.1654. AP Business Writer Stan Choe contributed. Teresa Cerojano, Associated Press
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E-Commerce
Intel might be going into business with an unlikely partner: the U.S. government. According to Bloomberg, the Trump administration is in talks to get a stake in the chip manufacturer. The size of the stake is unclear, but it will reportedly support Intels planned Ohio manufacturing plant. The news follows a meeting at the White House between President Trump and Intel CEO Lip-Bu Tan on Monday, August 11. Fast Company has reached out to Intel for comment and will update this post if we hear back. Shares of Intels stock (NASDAQ: INTC) jumped 7.4% on Thursday after the news broke. It continued to trend upward through after-hours and into premarket trading on Friday. If true, Intel would follow in the steps of its fellow tech giants Nvidia and AMD in becoming bedfellows with the Trump administration. On Monday, the pair made a deal to receive export licenses for China in exchange for giving the government 15% of the sales. Nvidia and AMD had faced restrictions on chip sales to China and can only sell their H20 and MI308 chips, respectively. Intels potential agreement comes after a swift 180 in Tan and Trumps relationship. It was just last Thursday, August 7, that Trump called for Tans resignation on Truth Social. Trump claimed that the CEO is conflicted due to investments in Chinese semiconductor firms, which might have a link to the Chinese Communist Party and the Peoples Liberation Army. Tan defended himself in a letter sent to Intels employees and shared publicly, stating, I have always operated within the highest legal and ethical standards. Four days later came the White House meeting and a change in tone. In a separate Truth Social post, Trump called the meeting an interesting one and said Tans success and rise is an amazing story. He added that Tan would work with his cabinet members this week to bring suggestions to him. If the unusual deal does move forward, it could bring momentum for Intels Ohio manufacturing plant. The factory was initially meant to start chip manufacturing in 2025, but in February, Intel announced a delay until 2030 or 2031. Then, Intel noted in its July second-quarter earnings report that it would further slow the pace of construction to align with demand.
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E-Commerce
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