U.S. retail sales rose in July by more than forecast, suggesting consumers still have the wherewithal to sustain the economic expansion.

The value of retail purchases increased 0.7% in July after upward revisions in the prior two months, Commerce Department data showed Tuesday. The upbeat figure reflected increases in a variety of sales categories, including sporting goods stores, clothing outlets and restaurants and bars.

The latest data illustrate how American households — supported by a strong labor market and rising wages — are so far buttressing the economy against recession in the face of high interest rates.

“This will boost optimism that because of the resilience of the consumer we can achieve that soft landing,” Lindsey Piegza, chief economist at Stifel Financial Corp., said on Bloomberg Television. At the same time, “this simply means the Fed will have to be more aggressive raising rates higher and keeping rates higher for longer,” she said.

Warren Buffett’s company appears to be betting on the housing market picking up because Berkshire Hathaway bought more than $700 million worth of homebuilder DR Horton’s stock this spring along with smaller stakes in fellow builders Lennar Corp. and NVR Corp.

Berkshire revealed those new investments in a quarterly filing with the Securities and Exchange Commission that shows the conglomerate’s holdings as of the end of June.

Buffett’s company made a number of other tweaks to its portfolio during the second quarter including reducing the size of its General Motors and Globe Life stakes while adding to its Capital One investment.