Retailers Rebound in July

The US Commerce Department said US retail sales rose 0.8% to $403.9 billion in July, following three straight monthly declines. It marked the biggest gain in sales since February. Compared with July 2011, sales are up 4.1%.

Sales fell a downwardly revised 0.7% in June, compared with a 0.5% decrease originally reported. The sales are seasonally adjusted, but they aren’t adjusted for price changes. The pickup in July’s sales easily beat expectations, as analysts had predicted modest sales growth of 0.2%.

Retail sales account for about half of total consumer spending and about a third of final sales in the U.S. economy. In the second quarter, consumer spending decelerated to a 1.5% annual growth rate from a 2.4% pace in the first quarter.