U.S. Retail Sales, Led By Auto Sales, Blow Past Market Expectations

By: Tomas Ronolski - AllPennyStocks.com News

Friday, August 16, 2024

In a busy week for U.S. economic data, retail sales stole the show, blowing past expectations. Measuring consumer demand for finished goods, the monthly report reported and released by the U.S. Census Bureau acts as a leading indicator of the U.S. economy.

Following a downwardly revised drop in June, advance monthly sales soared 1.0 percent in July, significantly above consensus estimates for a 0.3 percent rise. Gains were led by motor vehicle and parts dealers, up 3.6 percent, while electronic and appliance store sales gained 1.6 percent. Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.3 percent for the month. Since last year, retail sales have risen 2.7 percent.

One reason for the surge might be incentives. Carmakers offered extensive incentives in July, with one report showing a rise of 7.0 percent of the average transaction price, up from 6.4 percent in June and the highest level seen in 2024.

Not all categories were up. Miscellaneous store retailers saw sales drop 2.5 percent and sales for sporting goods, hobby, musical instrument and book stores fell 0.7 percent. Spending continued to be strong at food and beverage stores, with sales up 0.9 percent.

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