Americans stepped up their spending at retailers last month by the most in a year and a half, the Associated Press reports, easing concerns that the economy was slowing under the pressure of higher prices.
The Commerce Department reported today that U.S. retail sales jumped 1% from June to July after declining slightly the previous month. Auto dealers, electronics and appliance stores, and grocery stores all reported strong gains.
Adjusted for inflation, sales rose about 0.8%. Excluding gas station sales, which don’t reflect Americans’ appetite to spend, retail sales also rose 1%.
Consumers have been pummeled since the pandemic by high prices and elevated interest rates. At the same time, however, average wages have also been rising, providing many households with the means to keep spending.
