Advertise with

July sales were five times higher than expected — though June sales figures were revised lower.
July sales were five times higher than expected — though June sales figures were revised lower.

Cars and clothing lead surprisingly large rise in US retail sales


By Lucia Mutikani - Aug 17th 2018, 13:32

US retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong early in the third quarter. 

The commerce department said that retail sales increased 0.5% in July. But June data was revised lower, to show sales gaining 0.2% instead of the previously reported 0.5% rise.

Economists polled by Reuters had forecast retail sales nudging up 0.1% in July. Retail sales in July increased 6.4% from a year ago.

Excluding cars, petrol, building materials and food services, retail sales advanced 0.5% last month after a downwardly revised 0.1% dip in June. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

Core retail sales were previously reported to have been unchanged in June.

Consumer spending is being supported by a tightening labour market, which is steadily pushing up wages. Tax cuts and higher savings are also underpinning consumption.

July’s increase in core retail sales suggested the economy started the third quarter on solid footing after logging its best performance in nearly four years in the second quarter.

GDP surged at a 4.1% annualised rate in the April-June period, almost double the 2.2% pace in the first quarter.

While the economy is unlikely to repeat the second quarter’s robust performance, growth in the July-September period is expected to top a 3% rate.

Vehicle sales rose 0.2% in July after edging up 0.1% in June. Receipts at service stations increased 0.8%.

Sales at clothing stores rebounded 1.3% after declining 1.6% in June.

Online and mail-order retail sales increased 0.8%, likely boosted by Amazon’s Prime Day promotion. That followed a 0.7% rise in June. Americans spent more at restaurants and bars, lifting sales 1.3%.

But receipts at furniture stores fell 0.5% and sales at building material stores were unchanged last month.

Spending at hobby, musical instrument and bookstores declined further in July, falling 1.7%.
Business Live 

Read more about: us | sales | retailers | retail | consumer spend

Related News

US retail sales rise as households spend more
18/07/2019 - 14:16
US retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the hit on the economy from weak business investment.

Strong Asia growth boosts Richemont’s first-quarter sales
18/07/2019 - 13:38
The luxury-goods company reports a 9% year-on-year increase at constant exchange rates.

Refinery celebrates diversity with new fashion campaign
18/07/2019 - 11:39
Local fashion retailer Refinery is set to make waves across the local industry with its new spring campaign which embraces diversity, encouraging others to be unashamedly, authentically themselves.

Amazon offers $10 to Prime Day shoppers for access to their data
18/07/2019 - 09:53 has a promotion for US shoppers on Prime Day, the 48-hour marketing blitz that started recently: earn $10 of credit if you let Amazon track the websites you visit.

Retail sales jump in May ahead of expected rate cuts
18/07/2019 - 09:24
South Africa’s retail sales rose more than expected in May as sales of household goods, furniture and appliances expanded quickly, a hint that pressure on consumers was easing ahead of an expected lending rate cut that may further support spending.