Retail Sales, July | featured news

Americans boosted their spending at retail businesses in July by the largest amount in five months, a surge that could help lift the economy out from its slump. From cars, electronics and sporting goods to furniture, building supplies and garden equipment, every major category of spending rose last month. It was a heartening start to the second half of the year after consumers had reduced their retail spending in each month of the April-June quarter.

Deep discounts and the warmest July weather in decades should help retail chains report a rise in monthly sales, with many expecting warehouse clubs and high-end chains to lead the way.

Retail sales unexpectedly fell 0.1% in July despite the debut of the government's "cash for clunkers" program. Separately, weekly jobless claims rose a bit.

Disappointing performance underscores concerns about the timing and durability of a recovery.