Switzerland’s real retail sales increased 2.3% year-on-year in July, exceeding market expectations for a 1.3% rise, according to the Federal Statistical Office. The seasonally and calendar-adjusted data points to resilient consumer demand and followed revised growth in the previous month. Retail sales are an important measure of domestic consumption, a major contributor to the Swiss economy. The stronger reading could support economic growth in the third quarter and benefit consumer-focused businesses, although economists say the trend’s durability will depend on wage growth and consumer sentiment. Moderate inflation and a stable labor market have provided a supportive backdrop, while supply-chain disruptions and shifts in buying behavior remain potential risks.