"… this [retail sales data] represents a strong start to the third quarter, consistent with our view that a rebound in consumer spending growth will drive a modest pickup in GDP growth"
- Peter Newland, economist at BarclaysU.S. retail sales rose more than economists forecast in July. Sales at retailers gained 0.8 per cent to a seasonally adjusted $403.9 billion, said the Commerce Department on Tuesday. Compared with July 2011, sales increased by 4.1 per cent.
"Following weak readings throughout the second quarter, this represents a strong start to the third quarter, consistent with our view that a rebound in consumer spending growth will drive a modest pickup in GDP growth," said Peter Newland, US economist at Barclays.
"This report continues to support the emerging view that growth has not downshifted further at the start of the third quarter but may actually be showing a small pickup in activity," said analysts at RDQ Economics.
In a separate report the same day, the Labor Department said producer prices increased by 0.3 per cent in July, after adding 0.1 per cent the prior month.
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