According to U.S. Commerce Dept. reports, America's shoppers spent heavily in July 2003 on cars, appliances and clothes, catapulting retail sales by 1.4 percent over a year ago. It was the biggest increase in four months.
In May, retail sales went up 0.5 percent, followed by an even stronger 0.9 percent increase in June. The July performance beat analysts' expectations. They were forecasting a 1 percent rise in sales.
April, when retail sales fell 0.3 percent, is the last month in which there was a decrease.
Sales by automobile dealerships rose 3.2 percent in July, up from a 0.4 percent increase in June. (Auto-makers have been offering free financing and other incentives to bolster sales.) But even excluding both automobiles and gasoline sales, which can swing from month to month, July sales were up a still-solid 0.7 percent.
At electronics and appliance stores, sales advanced 1.2 percent, twice as fast as June's 0.6 percent increase. Sales of building and garden supplies rose 1.3 percent in July, on top of a 2.5 percent gain. Furniture and home furnishing sales went up 0.5 percent, after a 1.3 percent rise.
Clothing store sales gained 0.8 percent in July, after a 1 percent gain in June. Health and beauty store sales rose 1 percent, after a 1.3 percent increase.
Sales at bars and restaurants rose 0.9 percent in July, up from a 0.4 percent gain in June. At gasoline stations, sales rose 1.6 percent, up from 1 percent.