U.S. Consumers Get Back to the Buying Habit

After taking a breather in June, U.S. consumers returned to the stores last month as sales of general merchandise, sporting goods, and furniture rose.

Retail sales in July in the GAFS category (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) rose 7.2 percent over last year and increased 0.8 percent over June, according to the National Retail Federation (NRF).

“The strength of July sales demonstrates that June's weakness was simply a blip on the radar,” said NRF Chief Economist Rosalind Wells. “July's sales indicate that retailers are clearly poised to benefit from healthy back-to-school sales.”

July retail sales published by the U.S. Commerce Department show that total retail sales, including non-general merchandise categories such as autos, gasoline stations and restaurants, rose 0.7 percent seasonally adjusted over June and increased 7.1 percent unadjusted year-over-year.

GAFS sales for June were revised to 6.1 percent year-over-year growth and 0.2 percent up on May, bringing second quarter sales up 6.8 percent compared with a 9.9 percent jump in the first quarter.

The NRF forecasts 2004 GAFS sales will grow 6.0 percent over last year.