Retail sales in the US pushed by auto sector

US retail sales, seen as a key indicator of the American economy’s health, rose 0.4% this month compared to last month when they increased just 0.3%, according to figures from the Commerce Department.

However, this upward trend was driven primarily by retail activity in the auto sector; sales of cars and car parts increased 1.6% from June and petrol sales rose 2.3%.

Without these figures, US retail sales would have increased just 0.2%, revealing the importance of the strengthening auto industry.

July sales totaled $362.7 billion, which is 5.9% more than retail sales in July of 2009. Despite this, retail sales in several areas such as clothing, electronic and furniture all decreased.

The retail sales, which account for around 70% of what goes on in the American economy, were much lower than expected, casting a shadow of doubt over the US recovery.