When The Going Gets Tough… The Tough Go Shopping
By John Persinos
Shopping is like a chore to me, but my wife Carole treats it like an Olympic sport. She's always willing to fight for Team USA. With retail sales making up around 70% of U.S. gross domestic product (GDP), she's not just indulging…she's doing her patriotic duty.
And it seems she's not alone. July's robust retail sales numbers are proving that the American consumer is hanging tough, keeping recession fears at bay for now.
U.S. retail sales increased more than expected in July, belying worries about a sharp economic downturn that were fueled by a recent spike in the unemployment rate.
Retail sales increased 1.0% last month after a downwardly revised 0.2% drop in June, the Commerce Department's Census Bureau reported on Thursday.
Bolstering the gain in sales was bargain hunting and a growing preference for cheaper substitutes. "Core" retail sales (excluding automobiles, gasoline, building materials and food services) rose 0.3% last month after advancing by an unrevised 0.9% in June (see chart).
Core retail sales correspond most closely with the consumer spending component of GDP data. The robust retail data indicate that the economy is standing firm, despite the uptick in joblessness that caused market swoons last week.
Read More...
没有评论:
发表评论