Business

Solid U.S. Retail Sales Bolster Fed Rate Hike Expectations

In this Thursday, Nov. 27, 2014, photo, a woman pays for merchandise at a Kohl's department store in Sherwood, Ark. Relying on credit for holiday shopping without a plan to pay off the debt quickly can easily cost you more in the long run. (AP Photo/Danny Johnston)
(AP Photo/Danny Johnston)

(Reuters) – U.S. retail sales rebounded in July as households boosted purchases of automobiles and a range of other goods, suggesting the economy was growing solidly early in the third quarter and bolstering the case for a Federal Reserve interest rate hike.

While other data on Thursday showed a rise in new applications for unemployment benefits last week, the trend still firmly pointed to a tightening labor market.

“U.S. consumers are out there spending and driving a large part of economic growth. It means the Fed will be confident that the economy is still on fairly strong footing and supports the view that they could raise rates in September,” said Luke Tilley, chief economist at Wilmington Trust in Wilmington, Delaware.

The Commerce Department said retail sales rose 0.6 percent last month, broadly in line with economists’ expectations, and were unchanged in June, an upward revision from the previously reported 0.3 percent drop. May’s data was also revised higher, adding to the report’s upbeat tone.

READ MORE

Tags
Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


By submitting this form, you are consenting to receive marketing emails from: Washington Informer Newspaper, 3117 Martin Luther King Jr. Ave SE, Washington, DC, 20032, http://www.washingtoninformer.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Back to top button

Subscribe today for free and be the first to have news and information delivered directly to your inbox.


By submitting this form, you are consenting to receive marketing emails from: Washington Informer Newspaper, 3117 Martin Luther King Jr. Ave SE, Washington, DC, 20032, http://www.washingtoninformer.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker