WASHINGTON (dpa-AFX) - A report released by the Commerce Department on Friday showed retail sales in the U.S. increased in line with economist estimates in the month of July.
The Commerce Department said retail sales climbed by 0.5 percent in July after jumping by an upwardly revised 0.9 percent in June.
Economists had expected retail sales to rise by 0.5 percent compared to the 0.6 percent increase originally reported for the previous month.
'Prior month retail sales numbers were actually better than previously reported, which makes today's headline numbers better than they appear (e.g. because they are still increasing on much higher previous numbers),' said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.
He added, 'As long as consumer spending holds up and companies are able to retain workers because of that robust spending, the flywheel can continue to spin, pushing corporate profits and stock prices higher.'
The retail sales growth partly reflected a continued surge in sales by motor vehicle and parts dealers, which shot up by 1.6 percent in July after jumping by 1.4 percent in June.
Excluding sales by motor vehicle and parts dealers, retail sales still rose by 0.3 percent in July after climbing by 0.8 percent in June. The increase in ex-auto sales also matched expectations.
Sales by furniture and home furnishing stores jumped by 1.4 percent, while sales by department stores, non-store retailers and sporting goods, hobby, musical instrument and book stores also saw notable growth.
Meanwhile, sales by miscellaneous store retailers tumbled by 1.7 percent and sales by building material and garden equipment and supplies dealers slumped by 1.0 percent.
The report said core retail sales, which exclude automobiles, gasoline, building materials and food services, increased by 0.5 percent in July after climbing by an upwardly revised 0.8 percent in June.
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