Millions of Americans remain unemployed during the coronavirus pandemic and many are struggling to pay their bills. But despite devastation in other parts of the US economy, American consumerism has staged a rapid comeback. US retail sales rose 1.2% in July from the previous month, the Commerce Department reported Friday. Initially, Wall Street wasn’t impressed […]
by: CNN Wire Millions of Americans remain unemployed during the coronavirus pandemic and many are struggling to pay their bills. But despite devastation in other parts of the US economy, American consumerism has staged a rapid comeback. US retail sales rose 1.2% in July from the previous month, the Commerce Department reported Friday. Initially, Wall Street wasn’t impressed with the data. Stocks fell in morning trading after the number fell short of economists’ forecasts. But lurking in the report was a bright spot. After slumping to a seven-year low in April, retail sales bounced back to their pre-pandemic level in just a few months. As of July, they were at their highest level on record. The milestone came in part because the Commerce Department revised June’s retail sales figures higher. Consumer spending is the biggest engine of US economic growth, and retail sales are an important component of that. The report, however, does not include spending on services — things like hair cuts, medical care and financial services. So far, spending on retail goods has recovered at a faster rate than spending on services. The retail rebound has been driven by a few strong categories. Compared with July last year, sales were up 24.7% at “nonstore retailers,” a sector that includes ecommerce platforms.
