U.S. retail and food services sales for July hit $709.7 billion, an unexpected uptick of 1% from a month earlier and up 2.7% from a year ago, the U.S. Census Bureau reports.
In its analysis of that government data, The Washington Post said it showed that “Americans are still spending big — on cars, appliances and furniture — in a surprise burst of activity that’s propelling the U.S. economy and helping shake off fears of an impending downturn.
“Retail sales rose 1 percent in July, reversing a June slowdown and marking the largest jump in more than two years, according to new Commerce Department data released Thursday [Aug. 15],” the Post reported. “Car sales were particularly brisk, after a cyber-attack disrupted purchases the previous month. But there were gains across the board at restaurants and bars, as well as stores that sell groceries, electronics, furniture and health goods.”
The Los Angeles Times, meantime, noted that the upbeat sales report comes on the heels of a financial-markets plunge earlier this month spurred by government reports showing that hiring was weaker than expected in July and the unemployment rate rose for a fourth straight month.
“Yet since then, economic reports have shown that layoffs are still low and that activity and hiring in services industries remains solid,” the Times noted. “Americans are also still splurging on services, such as travel, entertainment and healthcare, which are not included in the retail sales report.”
Click here for more from the census bureau’s report.
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