The Commerce Department reported Thursday that consumer spending performed even better than expected in July as inflationary pressures showed more signs of easing.
On a seasonal rather than inflation-adjusted basis, high-end retail sales rose 1% this month. Economists surveyed by Dow Jones had expected growth of 0.3%. June sales were initially reported to be flat before being revised to a 0.2% decline.
Excluding auto-related items, sales grew 0.4%, also better than the 0.1% forecast.
There is also good news in the labor market: the number of people applying for unemployment benefits for the first time in the week ended August 10 totaled 227,000, a decrease of 7,000 from the previous week and lower than the 235,000 expected.
Sales growth was driven by growth at car and parts dealers, electronics and appliance stores and food and beverage outlets. Revenues at miscellaneous retailers fell 2.5%, while revenue at gas stations rose just 0.1% and revenue at clothing stores fell 0.1%.
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