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.

Shoppers spent at a healthy pace in July, particularly at the nation’s auto dealerships, even as President Donald Trump’s tariffs start to take a toll on jobs and lead to some price increases

Retail sales rose 0.5% last month, a slowdown from a revised 0.9% in June, according to the Commerce Department’s report released Friday. The increases followed two consecutive months of spending declines — a 0.