Americans are no stranger to Layoffs and unemployment in the past. They have stoically faced these hardships, and signs of recovery from the present COVID pandemic are also visible. CNN Business reports that American consumerism is making a comeback.
Millions of Americans have lost jobs during the Coronavirus epidemic. Many are struggling to pay their bills. However, the light is visible at the end of the tunnel. The American way of life is back with a bang, and there are figures to prove it.
Retail Sales Bounce Back
The Commerce Department reported Friday that US retail sales rose 1.2% in July from the previous month. Wall Street did not buy this news, and stocks fell in morning trading. It fell short of economists’ forecast. The bright spot was retail sales bounced back to their pre-pandemic level after slumping to a seven-year low in April.
Consumer sentiment is the fuel that runs the engine of the economic growth of any nation. Retail sales are an essential component of this factor. However, the report does not include data for the spending in the service segment. The expenditure on retail goods has recovered faster than the expense in the service sector.
E-commerce Platforms Does Well
The sales as compared to July last year were up 24.7% in the nonstore retailer sector. This sector includes e-commerce platforms. The building and garden supply retailers, grocery stores, and stores that sell sporting goods, hobby supplies, and musical instruments showed brisk sales. However, the report showed gas stations, department stores, ad clothing retailers are still operating far below average. The data reveals that Americans are still spending despite the pandemic scare even if the ways they spend have changed.
Michael Pearce, a senior US economist at Capital Economics, said in a research note Friday “The retail sales figures are encouraging because they suggest the recovery has continued to grind on even in the face of the resurgence in virus cases,”