US shoppers sharply boosted spending at retailers in July despite higher prices
Aug 15, 2024, 5:40 AM
FILE - People walk around a Walmart Superstore in Secaucus, New Jersey, on July 11, 2024. (AP Photo/Eduardo Munoz Alvarez, File)
Credit: ASSOCIATED PRESS
(AP Photo/Eduardo Munoz Alvarez, File)
WASHINGTON (AP) — Americans stepped up their spending at retailers last month by the most in a year and a half, easing concerns that the economy was slowing under the pressure of higher prices and elevated prices.
The Commerce Department reported Thursday that U.S. retail sales jumped 1% from June to July after having declined slightly 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%.
Consumers have been pummeled since the pandemic by high prices and elevated interest rates. Yet at the same time, average wages have also been rising, providing many households with the means to keep spending.
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.
