For the first time in five months, retail spending in the U.S. has seen major improvement.
Throughout July, retail spending increased in all sectors, including electronics, building supplies, garden equipment, furniture, sporting goods, apparel and more.
According to the commerce department, retail sales increased 0.8% in total last month; the most significant rise since February. March, April and May actually reported declines in retail sales.
Businesses throughout the U.S. are relaying growth in net income. Home improvement retailer Home Depot saw a 12% increase thanks to boosted sales of paint, bathroom accessories and kitchen installations, while Macy’s teen clothing business upped the store’s net income by 16%.
James Donnelly of Tadpole, a Boston retailer of baby clothes, toys and accessories, said:
“People are spending a little more and feeling a little better about the economy.”
Back-to-school and end-of-season sales have also upped sales throughout the nation, as have the 163,000 new jobs created over the course of last month. U.S. exports are on the rise, and stock indexes have also seen improvement.
Naroff Economic Advisors’ Joel Naroff said:
“I am looking for a better second half of the year, in part because I think business will become more confident, and they will increase their hiring.”