Retail sales rise in July points to solid consumer spending

Total sales for the May 2015 through July 2015 period were up 2.3 percent (±0.7%) from the same period a year ago.

Dennis de Jong, managing director UFX.com, noted that every piece of data coming out of the US in the next couple of weeks has taken on extra significance as it could be the difference between an interest rate hike in September or December.

The report said retail sales rose by 0.6% in July, while revised data showed that sales were unchanged in June.

Sales at U.S. retailers were solid in July and stronger than previously estimated for May and June, suggesting the economy is on firm footing going into the second half of the year. Clothing stores sales rose 0.4 percent.

Consumers have also benefited from cheaper gasoline. They’re highlight the plunge in oil prices as a risk to consumer spending in Texas while noting that housing-related spending is growing strongly. “We have a vibrant labor market and the unemployment rate continues to move lower”. The Commerce Department last month reported gross domestic product grew at a 2.3 percent annualized rate from April through June. This was expected as the light vehicle selling rate rose to a seasonally adjusted 17.5 million units, the second best result since early 2006. Most of the growth in retail spending has occurred at auto dealers, furniture stores and restaurants, barely offsetting the downward pressure on spending caused by lower fuel costs. May sales were revised to show a gain of 1.9% instead of a 1.0% gain. The company said the promotion helped to drive orders surpassing Black Friday, an annual U.S. sales event following the Thanksgiving Day holiday that kicks off the year-end shopping season.