Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020
News Every Day |

US retail sales climbed less than expected in August as economic bounce-back slowed

Mall coronavirus retail
  • Americans spent less than expected at retailers in August as the economy reopened further.
  • US retail sales increased 0.6% last month, missing the average economist estimate of 1%.
  • Though the reading marks the fourth straight month of improvement, the indicator's rally slowed through the summer as stimulus programs expired and coronavirus infections swung higher.
  • Visit Business Insider's homepage for more stories.

Consumers spent less than expected at retailers in August as the economy continued its rebound from coronavirus lockdowns.

US retail sales increased 0.6% last month, falling short of the consensus economist estimate of 1%. The reading marks an slowdown from July's 1.2% climb.

Excluding car purchases, sales rose 0.7%, also lagging forecasts calling for a 1% expansion.

In all, last month's jump was the fourth straight increase after the gauge tanked in April. Retail sales data are among the few economic indicators showing a V-shaped through the pandemic. The metric was somewhat boosted by economic relief payments and expanded unemployment insurance included in the $2.2 trillion CARES Act.

Read more: Anthony Angotti quit his 9-to-5 career to pursue real-estate investing full time. Here's the strategy he's used to balloon his portfolio to 89 units after an initial duplex investment.

However, the pace of retail sales' rebound slowed through the end of summer as stimulus programs dried up and Americans remained cautious of reopening risks.

Other gauges including weekly jobless claims, purchasing managers' indexes, and credit-card spending reports show the US recovery losing steam in recent months. The resurgence of virus cases in July and August drove many Americans back into quarantines and slammed businesses already struggling through lockdowns. Though new cases have trended lower for several weeks, the rate of improvement is weakening.

"It must be noted that overall retail sales in August were nonetheless 2.6% higher than they were at the same time last year, making retail consumption one of the fastest-recovering areas of the US economy," Cailin Birch, global economist at The Economist Intelligence Unit, said in a statement. "But without a doubt, the momentum of this recovery has stalled, and we believe the US economy has several hard months ahead." 

August's retail sales slowdown comes as Congress remains deadlocked in negotiations for a second stimulus measure. Democrats argue a new package should include at least $2.2 trillion in relief spending, while the White House indicated it wouldn't sign a bill with more than $1.3 trillion in aid.

Senate Republicans teed up a $500 billion "skinny" proposal last week that included a $300 per week expansion to unemployment benefits and aid for small businesses. Democrats blocked the bill's passage and deemed the package too small to meaningfully pad against the current economic slump. Republican Sen. Rand Paul also voted against the measure, criticizing the argument for more federal spending.

Read more: MORGAN STANLEY: Buy these 6 stocks poised for gains as the economic recovery continues and Congress mulls more coronavirus stimulus

Read the original article on Business Insider

Read also

THE MARKETING MASTERCLASS: Low cost marketing strategies for SMEs

Ohio's domestic violence funding slashed by $20 million

Lightning blank Stars 2-0 to capture Stanley Cup in six games

News, articles, comments, with a minute-by-minute update, now on — latest news 24/7. You can add your news instantly now — here