Retail Sales Less Autos

U.S. retail sales rose by 0.4% in July compared to the 0.5% increase that had been expected by economists and a revised 0.3% drop in June (first reported as –0.5%).  The increase in sales was led by autos and gasoline.  Sales excluding autos rose 0.2% in July after a 0.1% decrease in June.  Excluding autos, gasoline and building materials, the figure the government uses in its calculation of GDP, sales fell by 0.1% following a 0.3% increase in June.

Summary:  Retail sales rose for the first time in three months, although the increase was less than economists had expected.  These figures support the Federal Reserve’s statement that the recovery is likely to be “more modest” than was initially predicted.

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