Spending on Automobiles, Restaurants Up in July
Commerce Department’s statistics revealed that Americans made maximum investment in cars, eating out and ordering services in July—resulting in better consumer confidence in market.
Retail sales jumped 0.6% in July while the figures were flat in the previous month (June).
Market analysts said that increased investment in retail sector can have a positive impact on the economy given the fact that consumer expenses drive the US economic trends.
“This report looks solid after a run of disappointing numbers,” said Ian Shepherdson, Chief Economist at Pantheon Macroeconomics.
Analysts said that the economy growth was scaled at 3% during the second quarter. This was in contrast with estimated growth of 2.3% in July.
The sales in auto industry went up by 1.4% in July. In eating joints, meanwhile, 0.7% rise in sales was recorded. The residents also shopped significantly at furniture stores, sports malls and in apparel markets.
However, no other sector saw any major earnings in July. The sale figures were low at electronic and grocery stores.
Analysts also noted that the residents are now being more inclined towards online purchases instead of visiting malls and buying items. Mega grocery stores Macy’s and Kohl’s recorded fallen profits during the quarter ending June.
On Wednesday, Macy’s Inc.’s profits fell 26% while its revenue went down 2.6%.
In the last one year, total retail sales have gone up by 2.4%, going beyond the estimated average of 2.1 %-- indicating increased purchases by consumers.