Sales at U.S. retailers rose less
than half as fast as expected in August as discounting held down
receipts at auto dealers and purchases of building materials fell
for the first time since February, a government report showed.
Sales increased 0.6 percent during the month, to $319.2
billion, after a revised 1.3 percent increase in July, the
Commerce Department said in Washington. Excluding automobiles,
sales gained 0.7 percent last month after a revised 1 percent
gain.
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New vehicle and parts sales climbed a fifth as much as in
July, failing to keep pace with the 10 percent rise in unit
deliveries of cars and trucks, as automakers used discounts to
lure customers. At the same time, extra cash from tax cuts and
mortgage refinancing is supporting consumer spending, which
accounts for 70 percent of the economy and has been fueling the
expansion.
“Excluding autos, sales have had three really good
months,” said Tim McGee, chief economist at U.S. Trust Corp. in
New York. “The consumer has been spending a lot more of those
tax cuts than we expected.”
Economists had estimated that retail sales rose 1.5 percent
last month following an initially reported 1.4 percent gain in
July, based on the median of 67 forecasts in a Bloomberg News
survey of economists. Sales excluding automobiles were expected
to rise 0.8 percent, the same as previously reported for July.
Building material purchases declined 0.2 percent after
rising 7.7 percent in the last year during the housing
construction boom.
