Retail’s rapid rebound shows promise for U.S. economy
After suffering the biggest slump in seven years this April, retail sales are on the rebound. Consumer spending was up for the last three months, July hitting an all time record.
Big spending was seen on electronics, gas, clothing, and bars and restaurants. New auto and home sales have also been strong. The report from the U.S. Department of Commerce, however, does not consider hair cuts, medical expenses, and financial services.
But, experts say it’s not time to celebrate just yet. The additional 600 dollars a week for unemployment benefits were part of the federal stimulus package, which helped drive spending. Those benefits expired in July and economists say this could stall the uptick in spending. Congress has yet to pass a second stimulus bill, leaving millions uncertain about their unemployment benefits.