Retail sales inch up as Americans load up on electronic devices

Retail sales grew a disappointing 1.2 percent in July following two months of sharp gains, raising worries about a renewed wave of economic pain as enhanced unemployment benefits expire for millions of Americans.

Consumers pulled back on big-ticket items like cars, building materials and sporting goods in July, but spent more on food, gasoline, and health and beauty products, according to numbers released Friday by the U.S. Commerce Department. Spending increases were generally modest, with one exception: Electronics and appliance stores grew 23 percent from June as families stocked up on laptops, headphones and webcams to prepare for a virtual start to the school year in many parts of the country.

Overall consumer spending inched up to $536 billion, from $529.4 billion in June.

The uptick follows two months of surprise growth — retail sales surged a record 18.2 percent in May, and 8.4 percent in June — after steep drop-offs the previous two months. Retail sales fell 8.3 percent in March and 14.7 percent in April.

The pandemic has plunged the nation into the worst economic crisis since the Great Depression. And though there are signs the wealthy have recovered, economists say it probably will take years for the rebound to reach most Americans. More than 30 million people are collecting unemployment benefits, with Black and Hispanic families among those who have been hit hardest by the crisis.