Economics

Consumer Spending Picks Up With Jump in Retail Sales

  • Receipts at retailers in July register biggest advance of year
  • Economists raise their 3Q consumption tracking estimates

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)

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American consumers flexed some muscle in July. Shoppers splurged at Internet retailers, department stores, restaurants and auto dealerships, boosting sales by the most this year and giving the quarter a stronger-than-expected start.

The broad increase followed upward revisions to the prior two months that erased previously reported declines, Commerce Department data showed Tuesday. Amazon.com’s Prime Day event helped non-store retailers post the biggest gain this year, car dealers reported a strong result and sales at department stores climbed the most since January.