July Sales Inconclusive

Retail sales rose for a second consecutive month in July, according to the U.S. Commerce Department. But the larger-than-estimated 1.2 percent jump — after a 1.4 percent gain in June — may have masked declines in the sale of appliances, apparel, home electronic goods and furniture.

The increase in sales figures for cars and fuel were driven by zero-interest financing for cars and higher gasoline prices.

Sales at apparel and accessories stores fell 1.3 percent, after rising 2.5 percent in June. Department stores and mass-merchandise discounters sold 0.1 percent less merchandise. Sales at home electronics and appliance stores fell 1 percent. Furniture sales fell 1.4 percent, the largest one-month decline since September 2001.

The consecutive monthly increases in spending were the first this year, and the largest in back-to-back months since November and December 1999.

“The July retail sales report does little to resolve the issue of whether consumers are going to continue spending at a fast pace for the duration of the year,” said one economist. “The boost in July auto sales appears to have pulled sales away from other items.”