Retail sales grew by 0.6 percent in in August, marking the fastest climb in four months. The data follows a previous 0.3 percent climb in July, both of which are considerably strong and prompt economists to suggest a boost in the US economy. Eleven out of thirteen major categories reflected the gains, of which the most successful were auto dealers and building material stores.
According to Gus Faucher, economist with PNC Financial Services Group Inc.,
The consumer is in decent shape right now… We are looking at solid economic growth in the third quarter.”
Economists suggest the boom in retail sales is due to the combined effects of higher hiring rates, stock-market growth and low gas prices. The anticipated wage growth is projected to further boost consumer spending.
Bloomberg economists estimate the economy will grow at a 3 percent annualized rate this quarter. They further suggest GDP will rise by 4.2 percent during this period.
Read more here- “Retail Sales in U.S. Increase by Most in Four Months,” (Shobhana Chandra, Bloomberg)