July Retail Sales Post Biggest Gain in Six Months

Several economic reports indicate a continued uptick in U.S. consumer spending, with the Commerce Department noting that retail sales rose for the fourth consecutive month in July, climbing 0.2 percent, or 0.5 percent with the exclusion of auto, gas, and building supply categories. July’s sales gain represents the biggest increase in half a year. Department store sales increased at their fastest rate since last year with a 0.6 percent gain in July, up from a 1.2 percent decline in the previous month. Prices for imported goods have risen, but analysts say this has not been enough to hinder consumer spending, which signals underlying economic strength. Commerce Department data showed a modest 0.2 increase in sales to businesses while business inventory levels remained flat in June. That means that companies may soon bolster the economy further by restocking their inventories. Meanwhile, a National Federation of Independent Business report found that small business owners have a more positive outlook. “The data are very clear; they show that economic conditions are improving,” says the Harris Financial Group’s Jamie Cox.

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From “Rise in Retail Sales Signals Stronger Growth”
Washington Post (08/14/13) Sokou, Katerina