Consumption: US retail trade with a surprising and significant drop in sales
US retailers reported a 0.6 percent drop in sales - economists had expected growth. The decline is due to special effects and lower gasoline prices.
Washington. US retail sales surprisingly got off to a weak start in the second half of the year. Their turnover fell by 0.6 percent compared to the previous month, the Commerce Department announced in Washington on Friday. Economists surveyed by Reuters, on the other hand, had expected a minimal growth of 0.1 percent. In June, revenues had still risen by 0.2 percent.
Experts attributed the decline to several factors. The generous tax refunds that had supported consumption in the second quarter are now exhausted, according to economists. In addition, a special effect was noticeable: The online retailer Amazon had brought forward its "Prime Day" discount campaign from July to June, which had boosted sales in the previous month.
At the same time, lower gasoline prices depressed revenues at gas stations. Car manufacturers also reported weaker sales figures. A closer look at the data shows the weakness in July: The core sales, adjusted for volatile items such as car sales and gasoline, an important indicator of gross domestic product, fell by 0.4 percent.
Private consumption is the most important growth driver for the US economy and accounts for more than two-thirds of economic output.
Translated by urgent.news. Machine-written — may contain errors; check the original before relying on it.
