US Economy Strengthen Due to Growth in Retail Sales and Productivity

The American economy continues to have a booming retail sales and productivity exceeds its expectations. The US households were able to boost its vehicle spending, clothing, and other products for the month of July by 0.5 percent which shows higher results than the expected 0.1 percent, indicating a strong head start for the third quarter. While the productivity was able to gain higher momentum at 2.9 percent for more than three years.

The official figures came in optimistic as jobless rate remained at 18-year lows. US President Donald Trump stated that the country is competing to a period of rapid increase known as ‘the American economic miracle’ due to deregulation and tax reductions. According to experts, the numbers showed consumer confidence that helps stimulate a stable economic growth.

The retail data in July came in higher-than-expected despite the increase in June revised downwards to 0.2 from 0.5 percent. This excludes building materials, cars, food services, gasoline, July retail sales grew by 0.5 percent following a decline of 0.1 percent in June. the annual retail sales in July jumped to 6.4 percent. The strong numbers may prompt the Fed Reserve to approve interest rate hike in September.