US shoppers sharply boosted spending at retailers in July despite higher prices

abcnews.go.com:

Americans stepped up spending at retailers last month by the most in a year and a half, easing concerns that the economy might be weakening under the pressure of higher prices and elevated interest rates

WASHINGTON — Americans stepped up their spending at retailers last month by the most in a year and a half, easing concerns that the economy might be weakening under the pressure of higher prices and elevated interest rates.

The Commerce Department reported Thursday that retail sales jumped 1% from June to July, the biggest such increase since January 2023, after having declined slightly the previous month. Auto dealers, electronics and appliance stores and grocery stores all reported strong sales gains.

The July retail sales data provided reassurance that the U.S. economy, while slowing under the pressure of high interest rates, remains resilient. It showed that America’s consumers, the primary driver of economic growth, are still willing to spend.

The prospect of a still-growing economy is likely to be promoted by Vice President Kamala Harris' presidential campaign, which is preparing to roll out policies Friday to ban “price gouging" on groceries. On Wednesday, her opponent, former President Donald Trump slammed the economic record of the Biden-Harris administration, though he wildly inflated cost increases on food and monthly mortgage payments.

Other economic data released Thursday was also mostly positive, including a report on first-time applications for unemployment benefits. The figures show that businesses are mainly holding onto their workers and not increasing layoffs.

With Americans spending more, economists at Morgan Stanley have boosted their forecast for growth in the July-September quarter to a 2.3%