Retail sales in the United States has gone up in the month of July, after four months of being low, which is a big sign that the consumers are starting to hold up as the third quarter of the year began.
There was a 0.5% increase according to the Commerce Department which is a slight gain following a 0.3% gain in the month of June. In another report, consumer sentiment was recorded to be low due to stock market declines and the threat of getting into a default due to the government’s debt problems.
There was also an increase in the numbers that are linked to consumer discretionary companies that are highly responsive to simple economic swings such as auto dealers, restaurants and hotels. Increase in household spending figures may be held back due to less job growth across the nation and uncertainty of economic growth in general.
According to Lindsey Piegze from FTN Financial, “The consumer is incredibly resilient and continues to struggle to maintain at least a minimum level of consumption. Lingering weakness in the labor market as well as the recent turmoil in equity markets will put additional pressure on consumers in August.”
The Standard & Poor 500 index was up by 0.5% to 1,178.81 which is a conclusion to a week of economic swings that has made records soar high up or down low. The S&P Consumer Discretionary Index which lists Ford Motor Co and Walt Disney Co, was up by 1.2%. Treasury securities were also up which had placed 10 year notes to 2.24% from 2.34%.
Tags: United States Department of Commerce, recent turmoil, slight gain, Lindsey Piegze, walt disney, simple economic swings, minimum level
