Widget Image
Follow PPD Social Media
Follow Us:
People's Pundit Locals Community
Monday, November 29, 2021
HomeNewsEconomyGauge of U.S. Consumer Spending Rises, Mixed Economic Data Has Market Edging Up

Gauge of U.S. Consumer Spending Rises, Mixed Economic Data Has Market Edging Up

consumer spending

Reuters

A gauge of U.S. consumer spending rose in July at its fastest pace in seven months, a sign of quicker economic growth that could strengthen the case for the U.S. Federal Reserve winding down a major economic stimulus program.

The Commerce Department reports retail sales ticked higher by 0.2% in July from June, narrowly missing estimates of a 0.3% gain. Excluding the automobile component, sales climbed 0.5%, topping estimates of a 0.4% increase. Retail sales outside of cars, gasoline and building materials rose 0.5 percent last month, the Commerce Department said on Tuesday.

That reading is a key component of the department’s measure of consumer spending, which is the biggest driver of the economy, as it accounts for about 70 percent of national output, or GDP.

July’s gain was the biggest since December, and suggests the economy could be regaining steam after tax hikes dragged down growth in the first half of the year.

Economists polled by Reuters had expected the core measure of retail sales to increase 0.3 percent.

Fed Chairman Ben Bernanke said last month that the U.S. central bank could begin reducing monthly bond purchases, which are aimed to lower borrowing costs and boost employment, by the end of the year.

In July, sales jumped 0.6 percent at U.S. department stores, the biggest gain since March 2012. Sales also posted strong gains at health and personal goods stores.

Sales of motor vehicles fell 1 percent during the month.

Overall retail sales rose 0.2 percent during the month, just below analysts’ expectations. Overall sales were helped by a strong gain in gasoline receipts.

The Labor Department also reported that import prices edged higher by 0.2% in July from June, shy of estimates of a 0.6% increase. Export prices dipped 0.1%, compared to forecasts of a 0.2% rise.

Written by
Data Journalism Editor

Rich, the People's Pundit, is the Data Journalism Editor at PPD and Director of the PPD Election Projection Model. He is also the Director of Big Data Poll, and author of "Our Virtuous Republic: The Forgotten Clause in the American Social Contract."

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial