July Retail Sales Rise

The Commerce Department reported retail sales rose 0.5% in July, the strongest showing since March, as consumers opened up their wallets. July sales of electronics and appliances rose 1.4% from June, furniture was up 0.5%, apparel was also up 0.5%, and auto sales grew 0.4%. On the downside, July sales of sports goods fell 1.5% from June and building materials fell 1.4%.

As gas prices retreat -- oil is flirting with $80 per barrel, down from over $100 scant months ago -- and back-to-school sales increase in August, expect August sales to dribble upwards. A Wall Street Journal survey of 46 economists contend the risk of a double-dip recession is 29%, even as consumer spending increased and initial claims for unemployment dropped below the magic 400,000 level for the first time in months. September may be the make or break month as companies decide whether to use cash on hand to ramp up purchases and employment or continue to sit out the recovery waiting for Godot.