WASHINGTON, July 15 - Sales at U.S. retailers posted a healthy gain in June, the government said on Tuesday, lifting hopes for an acceleration in economic growth in the second half of the year from the current sluggish pace.
The Commerce Department said retail sales grew by 0.5 percent to $310.42 billion in June after being flat in May. It was the strongest gain since March. June sales excluding motor vehicles were up a stronger 0.7 percent after rising 0.1 percent in May. Shoppers snapped up a variety of goods in June, with sales of furniture up 0.5 percent and purchases of sporting and hobby goods up 3.0 percent, their strongest gain since February 2001. Auto sales, however, were reported down 0.1 percent, likely reflecting increased discounting and incentives by offered by automakers. The numbers were close to Wall Street expectations, which were for a retail sales gain of 0.5 percent overall, and a rise of 0.4 percent excluding autos. Analysts expect U.S. consumer spending to be supported ahead by continued low interest rates and a boost to paychecks from tax cuts in an economic stimulus package passed by Congress in May.//