NEW YORK – Retail sales rose last month for a fourth consecutive month, a sign, according to Bloomberg, that “the U.S. economy is breaking free of the effects of higher taxes and federal budget cuts.”
July’s 0.2% increase comes on the heels of a 0.6% gain in June, according to Commerce Department figures issued earlier this week.
Nine of 13 major retail categories registered gains, led by clothing stores (+0.9%) and general merchandise stores (+0.4%).
According to Bloomberg, employment gains and increasing household wealth tied to higher home values and stock prices are bolstering consumer confidence.
“Consumers are still able to go out there and spend despite headwinds from tax increases and the sequester,” said Omair Sharif, a U.S. economist at RBS Securities Inc. “Job growth is continuing at a moderate clip and we’re making gradual headway.”
Purchases excluding autos, gasoline and building materials, rose 0.5% last month, the most since December, after increases of 0.1% in each of the previous two months.
Cars and trucks sold at a 15.7 million annualized rate last month, following a 15.8 million pace in June, the strongest month-to-month readings since 2007, according to Ward’s Automotive Group.
“We’re at the beginning of a broad-based recovery for the economy in auto retail,” said Michael Jackson, chairman and chief executive officer of AutoNation Inc. (AN), in Fort Lauderdale, Florida.
Restaurants, bars, grocery stores and sporting goods outlets also registered sales gains in July.