First monthly increase after three straight declines
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — After three straight monthly declines, sales at U.S. retailers increased 0.8% in July to a seasonally adjusted $403.9 billion, the Commerce Department estimated Tuesday.
Details of the report were strong, with monthly sales rising across the board. This was the biggest gain in sales since February.
Compared with July 2011, sales are up 4.1%.
Sales fell a downwardly revised 0.7% in June, compared with a 0.5% decrease originally reported.
The sales are seasonally adjusted, but they aren’t adjusted for price changes.
The pickup in July’s sales easily beat expectations. Ahead of the report, economists surveyed by MarketWatch had been on watch for modest sales growth of 0.2%. See MarketWatch economic calendar.
“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. U.S. stocks SPX +0.25% opened higher after the report.
Retail sales account for about half of total consumer spending and about a third of final sales in the U.S. economy.
In the second quarter, consumer spending decelerated to a 1.5% annual growth rate from a 2.4% pace in the first quarter.
Details
Excluding a 0.8% increase in motor-vehicle sales, retails sales for last month rose 0.8% to $330.2 billion, stronger than the 0.3% gain expected.
Sales at gasoline stations rose on the month, up 0.5% as prices at the pump increased. Excluding gasoline, sales rose 0.8%.
Excluding autos and gasoline, sales rose 0.9% in July.
Motor-vehicle sales rose 0.8% in July, a welcome reversal after having fallen 0.5% in June.
Furniture-store sales rose 1.1% on the month. Sales at electronics and appliances stores rose 0.9%.
Building materials and hardware store sales rose 1.0% after falling 2.3% in June.
Sales at the nation’s malls were higher in July. Sales at general merchandise stores rose 0.7%, including a 0.6% increase at department stores. Sales at clothing stores also rose, up 0.8%.
Sales at stores catering to leisure-time pursuits, such as hobbies, sports and reading, rose 1.6%.
July’s sales at health and personal-care stores expanded 1.1%.
Sales at food and beverage stores rose 0.3%. Sales at restaurants and bars rose 0.8%.
Sales at non-store outlets, such as catalogs and online stores, rose 1.5%.
Greg Robb is a senior reporter for MarketWatch in Washington.
