If the economy is so great, why the need for price caps?
Sales at stores are suddenly surging in the US economy’s latest show of strength
"The backbone of America’s economy remains solid, despite a slowing job market, elevated interest rates and still-high inflation.
Sales at US retailers unexpectedly surged in July, the Commerce Department said Thursday, rising by a solid 1% from the prior month, up from June’s downwardly revised 0.2% decline. That trounced economists’ expectations of a 0.3% gain.
Retail sales, which are adjusted for seasonal swings but not inflation, make up a sizable chunk of overall spending. July’s reading is a boon for the US economy because the country’s economic growth hinges on Americans spending their dollars.
It is the economy’s latest show of strength in the face of several economic hurdles squeezing the US consumer.
The Dow jumped 408 points, or 1%, as investors cheered the retail sales report. The S&P 500 gained 1.1%, and the Nasdaq Composite added 1.6%.
Sales jumped across most categories last month, rising the most at car dealerships, which likely reflects a rebound from the cyberattack on software systems that dealerships use earlier this summer. Those sales spiked by 3.6% in July. Excluding that category, retail sales were up by a still-strong 0.4% in July from June.
Retail spending on electronics and at grocery stores also rose robustly last month, up by 1.6% and 1%, respectively. Americans also continued to spend at bars and restaurants at a healthy pace. Meanwhile, sales were down at specialty stores and clothing retailers in July.
“The economy is maintaining an encouraging glide path down to a more normal state and a soft landing,” Oren Klachkin, financial market economist at Nationwide, told CNN.
