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 stepped up their spending in July, particularly at the nation’s auto dealerships. 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.

Retail sales were up by 0.5 percent for July, with June revised higher to 0.9 percent. Core retail sales also increased by 0.5 percent (0.8 percent for June). Read more