Washington: Retail Sales Healthier In July

In July, shoppers returned in buying mood, propelling sales up by 1.4 % at nation's retailers in six months.

Showing on retail sales for the month of July was stronger than the expectations of economists who had forecast a 0.8% gain.

Stockpiles of goods that were unsold rose by 0.8% in June with businesses sales inching up just 0.2%. June was a weak month for both retailers as well as manufacturers. Increase in stocks in June was greater than 0.5 % rise as anticipated by economists.

As shoppers regained their desire to spend, they started on grabbing a range of goods. Sales increased at stores that sold electronic appliances, garden and building supplies, beauty and health products, and furniture. Sales also shot up at restaurants and bars. Auto dealerships, with sales flagging in last few months, also observed an improvement as promotions and incentives helped lure buyers.

The 1.4% increase for the overall retail sales in the month of July was the greatest since January, when it jumped by 3%. Excluding automobiles sales, swinging widely every month, at the rest of the merchants increased by a strong 1% after edging up 0.1% in June.

Exceeding economists' expectations of a 0.5% gain, last month's rise in this category (which doesn't include autos) was the greatest since January. Also, sales at gasoline stations rose strongly in the month of July, which reflects high prices at pump. However, even if these sales are excluded from the total, rest of the merchants' sales increased by 1.3%, greatest increase since January.

Economists predict that growth from the quarter (July-to-September) shall clock in anywhere between 2.5% and a 3% pace.

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