Retail Sales Jump

[PinkFloyd40]

seems 3.5% is certainly in the cards for Q3, if not even greater...

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Retail sales jump

Consumers, whose spending makes up more than two-thirds of GDP, spent more in July.

August 13, 2003: 8:55 AM EDT

NEW YORK (CNN/Money) - Retail sales in the United States surged in July, the government said Wednesday, beating Wall Street expectations, a sign of strength in the world's largest economy.

The Commerce Department said retail sales rose 1.4 percent to $317.2 billion in July, compared with a revised gain of 0.9 percent in June. Economists, on average, expected a 0.9 percent gain in July, according to a Reuters poll.

Excluding autos, retail sales grew 0.8 percent, compared with a revised 1 percent gain in June. Economists, on average, expected a 0.5-percent gain in July, according to Reuters.

U.S. stock market futures traded higher after the report, pointing to a positive opening on Wall Street. Treasury bond prices fell.

Wall Street keeps a close eye on consumer spending, which makes up more than two-thirds of total gross domestic product (GDP), the broadest measure of the economy.

Helped by super-low interest rates, which have enabled people to buy cars and refinance their mortgages at lower rates, consumer spending has remained relatively strong in recent years despite a recession, terror attacks, a long stock-market slump, consumer scandals and war.

But many economists worry that a prolonged labor-market slump, which has already undermined consumer confidence, will eventually cut into consumer spending. The hope is that a boost in consumer spending in the fall, supported by a tax cut passed earlier this year, will help support recent gains in business spending, and the increased demand will force businesses to hire more workers.

July's gain in retail sales was led by a 3.2-percent jump in sales of automobiles and auto parts. Sales of electronics and appliances rose 1.2 percent, while furniture sales rose 0.5 percent. Sales at gas stations rose 1.6 percent, reflecting higher gas prices and higher summer demand.

Building material and garden supply sales rose 1.3 percent, likely a sign of lingering strength in home sales, which have also been supported by low interest rates.

[tranzwhore]

hey, i'm here to help

shop til ya drop

[mursa]

Originally posted by tranzwhore

hey, i'm here to help

shop til ya drop

...or until you waste all you Tax-Child benefit refunds .