WASHINGTON (Reuters) – Retail sales in the United States rose unexpectedly in August, likely boosted by back-to-school purchases and child allowances paid to households, which could temper the scenario of a sharp slowdown in economic growth in the third quarter.
The Commerce Department said Thursday that retail sales rose 0.7% last month after falling 1.8% in July, instead of an initially estimated decline of 1.1%.
Economists polled by Reuters were forecasting an average decline of 0.8% month-on-month.
Retail sales other than autos and fuels increased 2% last month.
Those excluding autos, gasoline, building materials and food services increased 2.5% after falling 1.9% (revised) in July.
This category is closest to the component of household consumption expenditure entering into the calculation of gross domestic product (GDP).
(Report Lucia Mutikani; French version Claude Chendjou, edited by Blandine Hénault)
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