American consumer spending increased in July, according to a new report from the National Federation of Independent Business. Despite an increase in fuel prices for many Americans, consumer retail spending hit a recent high in July, up 0.2 percent from previous months.
The slight increase in retail sales makes July the fourth month of constant growth in retail spending, All major American stock indexes increased on the news, which has been viewed as a major signal that the country’s consumer-driven economy is on its way back to long-term health and stability.
The report sourced its data from the Commerce Department, which has noted that retail spending has been on a long-term upward trend. American consumers spent more in the middle and second half of the year than they did in its early months, in which many households were forced to deal with strained budgets.
The fastest-growing sectors of the American retail world were department stores, which saw a 0.6 percent increase in total sales. Department store spending was hit hard in June, with consumers spending an average of 1.2 percent less in a variety of department stores such as Sears and Macy’s.
Small businesses also benefited from the increased retail spending, according to the National Federation of Independent Business. Owners of small businesses are more upbeat about the country’s near-term economic health, as are many consumers.
Despite the increase in retail spending, several sectors of the United States economy did not fare so well in July. Automotive spending decreased by 1 percent as very few Americans invested in new automobiles. Economists have pointed to the rising cost of fuel as a possible reason for the one percent decline in automotive-related sales.
The growth is good news for the United States economy, which has struggled with the news that the Federal Reserve may limit its efforts to control interest rates by purchasing government securities.
