July 15, 2016
The Commerce Department reported U.S. retail sales surged more than expected in June, supported by increased purchases of motor vehicles, and an array of other goods. Retail sales rose 0.6% last month, after gaining 0.2% in May.
It marked the third straight month of increases and lifted sales 2.7% from a year ago. That news supports the view that second-quarter economic growth was indeed on solid ground.
Industrial production recorded the largest increase in 11 months on the shoulders of strong output in the manufacturing and utilities sectors. The strength of domestic demand is resulting in rising inflation.
The positive consumer spending numbers, improved jobs and Wall Street’s rally could usher in an interest rate hike by the Federal Reserve later this year.
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