July furniture store sales jump 5

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The strong advance in retail sales in July is a good sign for overall economic growth.

Economists had forecast retail sales increasing 0.4 percent in July.

Retail sales in the USA increased by more than anticipated in the month of July, according to a report released by the Commerce Department on Tuesday.

There was a 0.3% increase in food and drinking places with the June data also revised to show a 0.3% increase which will boost confidence in discretionary spending. However, retail sales for the month of May were revised to show no change instead of the previously reported 0.1% dip.

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Excluding vehicle sales, retail sales still rose 0.5 percent, while leaving out the volatile gasoline segment, sales were up 0.7 percent.

The report said retail sales climbed by 0.6 percent in July after rising by a revised 0.3 percent in June. Receipts at electronics and appliance stores slipped 0.5 percent.

Consumer spending is by far the largest source of USA economic activity. The dollar.DXY was stronger against a basket of currencies. In April, sales increased 1.1 percent. The nonstore retailers category led the way with 1.8% M/M and 11.5% Y/Y growth, likely influenced heavily by the Amazon Prime Day event. Department store sales were down 1.3% from July a year ago but gained 1% over June of this year. Clothing retailers are struggling with falling traffic in shopping malls and increased competition from Amazon and other online retailers.

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