Americans increased their spending last month as inflation continued to ease on eggs, electronics, and other items, and the job market remained healthy, the Associated Press reports.
Retail sales rose a better-than-expected 0.7% in July from June. The gain followed a revised 0.3% gain the previous month, the Commerce Department reported today. Excluding auto and gas, sales rose a solid 1%.
Sales at several different outlets increased. Department stores posted a 0.9% increase, while clothing and accessories stores had a 1% gain. At restaurants, sales rose 1.4%. Online sales rose 1.9%. Furniture and home furnishings stores as well as electronics stores remained weak, however, registering declines.
The uptick reflects the economy’s resilience despite a still challenging economic environment of still-high prices and higher interest rates that make borrowing on credit cards and getting a mortgage for a home more expensive. That said, spending has been volatile this year after surging nearly 3% in January. Sales tumbled in February and March before recovering in April and May.
The report comes as inflation has cooled but not enough to meet the Federal Reserve’s target rate.
