If the economy is slowing, American consumers seem to be undaunted by it.
Americans stepped up their retail spending in July by the most in a year and a half.
According to statistics released by the Commerce Department Thursday, U.S. retail sales jumped 1% from June to July after a slight decline the previous month. Auto dealers, electronics and appliance stores and grocery stores all reported strong gains.
Adjusted for inflation, sales rose about 0.8%. And excluding gas station sales, which don’t reflect Americans’ appetite to spend, retail sales also rose 1%, according to a report by The Associated Press.
Inflation-adjusted wages have increased slightly from a year ago. Upper-income households have also seen their wealth increase, with stock prices and home values having jumped in the past three years. Increases in wealth can encourage more spending.
Financial markets had plunged earlier this month on fears surrounding the economy after the government reported hiring was much weaker than expected in July and the unemployment rate rose for a fourth straight month.
Since then, economic reports have shown that layoffs are still low and that activity and hiring in services industries remains solid. Americans are also still splurging on services, such as travel, entertainment, and health care, which are not included in Thursday’s retail sales report.
