Clothing, footwear, and automobiles boosted consumption in July despite economic uncertainty.

Consumption of goods and services showed slight year-over-year growth in July. This increase was mainly due to purchases of clothing and footwear , along with a rebound in the automotive market, according to a survey by the Argentine Chamber of Commerce and Services (CAC).

The Consumption Indicator (CI) rose 1.1% compared to July 2024, but fell 0.1% compared to June in the seasonally adjusted series. Even so, the index has accumulated increases throughout 2025, reflecting signs of moderate recovery in households.

Among the sectors measured, apparel and footwear led the expansion, with a year-over-year increase of 16.6%. The category started from a low base, having experienced a sharp decline last year. At the same time, more affordable relative prices boosted demand.

Transportation and vehicles also boosted consumption. Car registrations rose 57% year-over-year, allowing the sector to close with a 7% increase. Recreation and culture expanded 8%, although they still outweigh basic consumption. Meanwhile, housing, rentals, and utilities grew only 0.2%.

The CAC highlighted that monthly inflation in July stood at 1.9%. It was the third consecutive month below 2%, with a year-on-year rate of 36.6%. The slowdown in prices is helping to stabilize consumption, although it is not enough to fully boost it.

At the same time, wages followed inflation, but without any real improvement. The volatility of the dollar and high interest rates also generated caution among households, who postponed discretionary spending and reinforced precautionary savings.

Thus, consumption of goods and services closed July with positive results in some areas, although affected by macroeconomic fragility. Spending on clothing and footwear , coupled with the rebound in automobile prices, consolidated its position as the main driver of demand, but the future will depend on economic stability and income trends.