US retail spending rises as Americans turn to bars and cars
US retail spending growth bodes well for growth
Washington — US retail spending forged higher in June, with a second straight month of accelerating motor vehicle sales as the summer driving season set in, the US commerce department says. Americans spent more in bars and restaurants and bought more petrol, furniture and building supplies, offsetting sharp declines in sales of electronics, groceries, clothing, sporting goods and in department stores. At $506.8bn, retail spending was 0.5% higher than in May, matching analysts’ expectations. But the gain appeared smaller due to sharp upward revision of five-tenths in the prior month. Sales were 6.6% higher than June 2017 and further fuel for strengthening GDP growth in the second quarter. Car sales rose 0.9%, the biggest jump in three months, while petrol station sales rose 1%. Healthcare stores had their fastest sales increase in 14 years, adding 2.4% for June. Elsewhere, there were signs of weakness. Department stores saw their biggest drop in two years, sinking 1.8%. AFP
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