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    Thursday, May 09, 2024

    Retail sales post big gains

    Consumers spent more money in July on a wide variety of goods, marking the biggest one-month increase in retail sales since the spring. Retail sales rose a seasonally adjusted 0.5 percent from the month before, the largest increase since April, the Commerce Department said Friday. Economists surveyed by MarketWatch had expected sales to increase 0.7 percent overall.

    The mild but broad-based increase in spending at retailers marks a bright spot amid a sea of mostly negative economic data in the past month that has renewed concerns about the U.S. falling back into recession. The willingness of consumers to spend - the single biggest contributor to economic growth - is a critical bulwark against a potential downturn.

    "The solid July retail sales report should help allay recession fears," said Sal Guatieri, senior economist at BMO Capital Markets.

    Sales for June and May, meanwhile, were revised higher. For June, sales rose by 0.3 percent instead of 0.1 percent as originally reported, and sales for May were flat instead of down 0.1 percent.

    In the past three months, retail sales have climbed 8.2 percent compared to the same period one year ago. Excluding autos, sales also rose 0.5 percent to exceed the MarketWatch forecast for a 0.3 percent gain. Auto sales, which climbed 0.4 percent in July, often swing sharply from month to month and can mask underlying retail trends.

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