Sales at stores enjoyed a decided mid-summer bump last month, posting a 1% gain, and surpassing the expectations of many economists who predicted much smaller growth or none at all.
According to new figures released by the Commerce Department, the sales gain was across the board, and much healthier than June’s numbers, which actually saw a decline of 0.2%
Spending on electronics and at grocery stores saw healthy increases of 1.6% and 1% respectively, while food services and drinking places posted a 3.4% gain.
The greatest sector increase was seen in sales at car dealerships, showing a buoyant 3.6% gain.
Overall, the dollar worth of the country’s retail sales jumped from $702.9 billion in June to $709.7 billion last month.
The upward figures were largely seen as evidence that the nation’s 2024 economy is more resilient than many experts were giving it credit for. “Americans are still spending big,” noted the Washington Post, characterizing the jump in spending as shaking off “fears of an impending downturn.”
Noting that the sales gain was the greatest seen since early 2023, the Financial Times said the numbers should help to “calm investor nerves about the U.S. heading for potential imminent recession.”
Not every sector of the retail picture was on the upside, however: spending at clothing stores was off by 0.1%, with sporting goods sales down by 0.7%.
What impact these trends will have on a possible rate cut next month by the Federal Reserve remains unknown.
But David Payne, long-time economics columnist for the Kiplinger Letter, said he thought the late figures will ensure at least a quarter point cut, “not the half point cut that some investors thought the economy needs.”
By Garry Boulard
Image Credit: Courtesy of Pixabay
