US retail sales up solidly
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The US Commerce Department says retail sales rose a healthy 0.7 per cent last month, a sign of consumer confidence.
US consumers have spent more at retail stores and restaurants in July, a sign that concerns over slower global growth that have roiled financial markets haven’t dampened consumer confidence.
The Commerce Department says retail sales rose a healthy 0.7 per cent last month, after a 0.3 per cent gain in June. Online retailers, grocery stores, clothing retailers and electronics and appliance stores all reported strong gains.
Consumer spending, the primary driver of the US economy, remains healthy even as other sectors of the economy, such as business investment, have weakened amid growing uncertainty over the US-China trade war.
Job growth is steady, the unemployment rate is near a 50-year low, and wages are rising modestly, which bolsters Americans’ spending power.
Even department stores reported solid sales increases despite Wednesday’s anaemic earnings report by Macy’s.
Questions & Answers
Q.What was the retail sales increase last month compared to the previous month?
What was the retail sales increase last month compared to the previous month?
Retail sales rose by 0.7 per cent last month, which was an increase from the 0.3 per cent gain recorded in June. This indicates a healthy growth trend in consumer spending.
Q.Which specific retail sectors saw strong sales gains last month?
Which specific retail sectors saw strong sales gains last month?
Online retailers, grocery stores, clothing retailers, and electronics and appliance stores all reported strong gains. Even department stores experienced solid sales increases, despite a weaker report from Macy's.
Q.What factors are contributing to Americans' continued spending power?
What factors are contributing to Americans' continued spending power?
Steady job growth, an unemployment rate near a 50-year low, and modestly rising wages are bolstering Americans' spending power. This helps maintain healthy consumer spending despite broader economic concerns.