U.S. retail sales increased solidly in July, supported by strong demand for motor vehicles as well as promotions by Amazon.com and Walmart, though a softening labor market and higher goods prices could curb consumer spending growth in the third quarter.

M/M to $726.3B vs. +0.6% consensus and +0.9% prior (revised from +0.6%), according to data released by the U.S. Census Bureau on Friday.

U.S. retail sales were up 5.89% in July as consumers opened up their wallets amid promotional sales from top retailers, according to the National Retail Federation’s (NRF) Retail Monitor.