Retail Sales Show Broad Gain as U.S. Consumers Spur Growth
Source: Bloomberg
By Sho Chandra
August 13, 2015 — 8:30 AM EDT
Sales at U.S. retailers rose in July on growing demand for everything from cars to clothing, and a decline the previous month was wiped away, signaling consumers are propelling growth in the world’s largest economy.
The 0.6 percent advance matched the median forecast of economists surveyed by Bloomberg and followed little change in June that was previously reported as a 0.3 percent drop, a Commerce Department report showed Thursday in Washington. Eleven of 13 major categories showed gains.
Rising employment, stronger finances and still-cheap fuel is helping draw consumers into stores and auto dealerships. Growth in household spending, which accounts for about 70 percent of the economy, is bolstering the expansion as Federal Reserve policy makers move toward lifting interest rates this year for the first time since 2006.
“The consumer-driven recovery of the economy continues on track,” said Harm Bandholz, chief U.S. economist at UniCredit Group in New York, who correctly projected the gain. “The fundamentals are all in place for solid consumer spending. The outlook remains strong for the second half of the year.”
Read more: http://www.bloomberg.com/news/articles/2015-08-13/retail-sales-show-broad-based-gain-as-u-s-consumers-spur-growth
