Americans increased their spending at retail stores and restaurants in July for a third straight month, but some evidence suggests that sales are weakening with the expiration of government rescue aid that had previously put more money in people’s pockets. Friday’s report from the Commerce Department showed that retail purchases rose by a seasonally adjusted 1.2% last month. The gains of the past three months have now restored retail purchases to their levels before they plunged in March and April when the pandemic shuttered businesses and paralyzed the economy. Yet with Americans’ overall income now likely shrinking, economists expect spending to slow further. July’s sales increase was much smaller than May’s 18.3% gain and June’s 8.4% increase, when shoppers flocked to newly reopened businesses. In July, the viral outbreak re-surged in much of the nation, forcing some businesses to shut down again. Sales at restaurants and […]

Posted in: USA