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August 15, 2017

Retails sales up 0.6% in July, biggest increase since December

Total retail sales rose 0.6 percent in July – turning in the biggest increase since December. NAFCU Research Assistant Yun Cohen attributed the growth to online retailers.

"Online retailers, boosted by Amazon's Prime Day sales, were among the growth leaders," Cohen said in a NAFCU Macro Data Flash report on Tuesday. "Overall, recent retail figures were much stronger than previously thought, which should bode well for economic growth in the coming months."

June's retail sales were revised upward from a 0.2 percent decline to 0.3 percent growth, while May's sales were revised from a 0.1 percent decline to flat growth.

According to the Census Bureau data, year-over-year growth in retail sales was 4.2 percent in July, up from 3.4 percent in June. Core retail sales increased 4 percent from a year ago, while auto and gas sales rose 4.7 percent from last year.

"Sales continue to be constrained by muted wage growth and the lack of retail inflation," Cohen added. "Meanwhile, the shift to online shopping continues to take a toll at brick-and-mortar stores."