Commerce Department data released today showed that U.S. retail sales increased 1.2 percent from the prior month after an upwardly revised 8.4 percent gain in June, Bloomberg News reported. The total value of retail sales was above pre-pandemic levels, and July purchases were up 2.7 percent from a year earlier, indicating one major part of the economy has returned to near its previous trend. The slowdown, compared with June, reflected declines in sales of motor vehicles and building materials, along with weaker gains at restaurants and clothing stores. The report is in line with previous high-frequency data that suggested the economic rebound largely stalled in July. The so-called “control group” subset of sales, which excludes food services, car dealers, building-materials stores and gasoline stations -- and is sometimes seen as a better gauge of underlying trends -- rose 1.4 percent from the prior month, more than analysts projected. The retail sales report showed nine of 13 major categories rose, with the biggest increase coming at electronics and appliance stores. Such sales jumped 22.9 percent following a 37.6 percent gain in June.
