Consumer spending largest in 4 months
WASHINGTON — Consumers spent more on automobiles, furniture, clothing and gas in July, pushing up retail sales by the largest amount in four months. The gain signaled that Americans are a little more confident in the economy and could help dispel fears that the country is headed for another recession.
Retail sales rose 0.5 percent last month, the Commerce Department said this morning. It was the best showing since March. The government also revised sales higher in the previous two months.
Even after excluding sales at gas stations, which were influenced by an increase in gas prices, sales rose 0.3 percent last month.
The better-than-expected retail sales report is the second strong signal on the economy in as many days. Stocks rose in early trading. The Dow Jones industrial average gained 50 points.