WASHINGTON, Sept 16 — US retail sales posted a surprise 0.7 per cent rebound in August despite another sharp drop in car sales, the government reported today.
The increase, taking sales to US$618.7 billion (RM2.5 trillion), defied expectations for another drop, after the indicator measuring consumer demand fell 1.8 per cent in July.
Car sales fell 3.9 per cent, but if vehicles are excluded, overall retail sales jumped 1.8 per cent, according to the Commerce Department.
Auto prices surged as the US economy began to reopen from the pandemic closures and Americans resumed traveling, causing strong demand from rental car companies that was exacerbated by a semiconductor shortage which slowed auto production lines.
But with rental companies having restored their fleets, car sales have slowed.
Sales at appliance and electronics stores fell 3.1 per cent, while restaurants and bars managed flat sales, the report said, despite concerns over rising cases of the Delta variant of Covid-19.
Furniture stores saw a 3.7 per cent jump, and grocery stores posted a 1.8 per cent increase.
Meanwhile, online sellers bounced back with a 5.3 per cent gain, more than making up for the 4.6 per cent drop in July, the report said. — AFP
