U.S. retail sales rise at robust 0.5% annual rate in July

WASHINGTON — Americans shopped at a healthy pace in July, buying more cars, clothes and appliances, evidence that confident consumers are helping drive robust economic growth.

Retail sales rose at a 0.5 percent annual rate in July, after a 0.2 percent increase the previous month, the Commerce Department said Wednesday. June’s increase, though, was revised lower from a previous estimate of a 0.5 percent annual rate.

Consumers appear to be feeling upbeat and are in overall solid financial shape. The unemployment rate is near an 18-year low. And economic growth, along with hiring, has accelerated. On average, Americans are saving more, which may encourage future spending.

Sales last month rose at auto dealers and grocery stores and jumped at clothing shops. Americans boosted their spending at restaurants and bars 1.3 percent in July from June. Gas station sales increased at a 0.8 percent annual rate from a month earlier.

Spending at restaurants and bars has jumped nearly 10 percent from a year earlier. That’s a bigger increase than for online shopping, which rose 8.7 percent from a year ago.

Some of last month’s spending gains reflect higher prices, particularly at gas stations, where sales have jumped 22 percent in the past year.

The healthy spending figures coincide with other data suggesting that American households are in decent financial shape. The government last month revised the savings rate sharply higher, to 7.2 percent in the first quarter from 3.3 percent. And fewer people are falling behind on their loans.

More savings could fuel future spending growth. Before the data were revised, some economists had worried that consumers would have to cut back on their shopping because the savings rate was declining.