Consumers are buying new furniture, but not new houses.

From Marketplace, I'm Nancy Marshall Genser in for David Bancaccio.

Digging a little deeper into those relatively encouraging retail sales numbers we got from

the Census Bureau on Friday, consumer spending was up pretty significantly for more expensive

items. Sales at car dealers were up

4.7% in July from the year before. Furniture sales were up 5.1%. All that big ticket buying comes,

despite a softening labor market and broader economic uncertainty. Here's Marketplace's Matt Levin.

Sales are up 20% or so, month over month,

that Brenner's furniture and mattress in Eugene, Oregon. Revenue and foot traffic are up from last

year, too. If you're wondering why consumers are buying big-ticket items like recliners and sofas in the

midst of a slowing job market, General manager Lance Miles has the same question.

Yeah, I have no clue, man.

It doesn't make any sense to me.

Miles says he does see one sign of uncertainty,

maybe ever so slightly slipping into customer mindsets.

Sofas in the $500 range are a little more popular

than the $1,000 models these days.

I think we're seeing more people coming in, getting the less expensive stuff.

Furniture is one of those products where tariffs are starting to push prices up.

Max Connett, the retail consulting firm, Corsight Research, says wealthy consumers especially have tried to get ahead of tariffs by buying pricey stuff now as opposed to the end of the year.

People are making the purchases now while they perceive that prices are staying kind of where they've been.

But Khan doesn't expect the spending spree to last. A lot of big-ticket items are durable goods.

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