NEW YORK (AP) — Walmart posted another quarter of strong sales that exceeded nearly all expectations, and its relatively low prices proved a powerful draw for millions of people struggling with rising costs for housing, food and almost everything else.

The country’s largest retailer raised its full-year forecast, and executives said that while their customers were still waiting for special offers, they saw no signs of those letting up.

“So far, we are not seeing any weaker consumer sentiment overall,” CEO Doug McMillon told industry analysts on Thursday.

Across the retail sector, signs of resilience among the U.S. consumer are evident.

In the US, it was reported on Thursday that Americans increased their retail spending last month by the most in a year and a half. On Thursday at least, this helped to allay fears that the Federal Reserve’s ongoing campaign to curb spending through higher interest rates may have gone too far and hurt the main engine of the US economy, the consumer.

Walmart is one of the first major U.S. retailers to report quarterly results, offering insight into Americans’ attitudes toward their purchasing power, which have recently been called into question after hiring by U.S. employers unexpectedly fell sharply in July and the unemployment rate rose for the fourth consecutive month. The strong U.S. economy has been a key driver of global economic growth, and the U.S. labor market has given Americans the financial wherewithal to continue spending.

But July’s employment data, which shook markets, was repeatedly offset by broader economic trends that pointed to a steadily improving environment for both consumers and retailers.

The Labor Department said Wednesday that year-on-year inflation hit its lowest level in more than three years last month, another sign that the worst price spikes in four decades are easing and the Federal Reserve is backing a rate cut in September. While that doesn’t mean prices are falling overall, wages and the cost of living appear to be converging after the pandemic upended the economy.

Walmart Inc. reported profit of $4.5 billion, or 56 cents a share, for the three months ended July 31. It reported profit of $7.9 billion, or 97 cents a share, for the same period a year earlier, when the company booked big investment gains. Adjusted earnings per share were 67 cents, 2 cents better than Wall Street expected, according to FactSet.

Revenue rose nearly 4.8% to $169.33 billion, also exceeding expectations.

Comparable store sales – which include online sales and stores open for 12 months – rose 4.2 percent in the U.S., up from 3.8 percent in the first quarter and 4 percent in the fourth quarter.

Global e-commerce sales increased 21%, remaining at the same level as the first quarter.

The number of transactions and the average amount customers spent on each of those transactions at Walmart were higher this quarter than in the same three months last year.

And in a potentially encouraging development, Walmart reported that sales of essentials such as clothing were flat or up slightly. Americans have been laser-focused on essentials for two years, skipping non-essential goods and spending money on groceries and other everyday items instead.

Walmart Chief Financial Officer John David Rainey said in a phone interview with the Associated Press that the improvement was due to several factors: deflationary prices for general merchandise that attracted more shoppers and improved deals on Walmart’s shelves. Rainey cautioned that shoppers are still picky and are more drawn to private label products and waiting for special offers.

In July, Walmart launched its largest private-label grocery brand in 20 years, measured by product variety, in hopes of reaching younger customers who are no longer tied to food stamps and are looking to lower their grocery bills. Walmart expects to offer a total of 300 products under the Bettergoods brand by fall, from frozen foods to coffee and chocolate.

But food prices remained stubbornly high, Rainey said.

Walmart has increased discounts, with 7,200 price cuts last quarter, an increase of 35%.

For back-to-school season, Walmart has revamped its 30-year-old No Boundaries brand to appeal to Generation Z customers. Revamping the No Boundaries label is part of a strategy to get customers to see Walmart as a place where they can buy not just groceries, but also cool clothes.

Walmart now expects earnings per share for the full year to be in the range of $2.35 to $2.43. This is an increase from the previous estimate of $2.23 per share to $2.37 per share. Analysts had forecast $2.44 per share, according to FactSet.

The retailer expects sales to increase by between 3.75 and 4.75 percent this year. It had previously expected sales to increase by 3 to 4 percent.

Shares of Walmart Inc., based in Bentonville, Arkansas, rose 7% on Thursday.

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