Retail sales in the U.S. climbed in July by the most in four months, showing consumers are holding up even as employment slows.
The 0.5% increase reported by the Commerce Department in Washington today matched the median forecast of 81 economists surveyed by Bloomberg News and followed a 0.3% gain in June that was larger than previously estimated. Excluding auto sales, purchases rose more than projected.
More Americans drove away from auto dealerships in new cars last month as an easing of supply-chain constraints caused by Japan’s March disasters provided consumers with more variety and better pricing. Even so, Federal Reserve policy makers this week said they were concerned that household spending had "flattened out" and the recent plunge in stocks is hurting confidence.
Economists’ estimates ranged from increases of 0.1% to 1.5%. Non-auto sales were projected to rise 0.3%, according to the survey median.
Nine of 13 major categories showed a gain in sales last month, led by electronics stores, furniture retailers, auto dealers and service stations.
Excluding automobiles and service stations, sales climbed 0.3% after a 0.5% gain in June that was larger than previously estimated.
