Broad-Based Advance in U.S. Retail Sales Shows Solid Spending
Lara Rhame, senior economist at FS Investment Solutions, examines U.S. retail sales, which topped estimates with a 0.6 percent gain for the month of July. She speaks on 'Bloomberg Daybreak: Americas.' (Source: Bloomberg)
U.S. retail sales advanced in July by the most this year, with widespread gains from department stores to building materials outlets that signal a robust start to consumer spending in the third quarter, according to Commerce Department figures released Tuesday.
Americans spent more freely in July and upward revisions to sales in the prior two months show strong hiring, limited inflation and low borrowing costs are improving purchasing power. The acceleration bodes well for consumption, which accounts for about 70 percent of the economy.