Consumers 'spread the wealth' Print
Sunday, 17 August 2008 08:00 PM America/New_York

With a little help from the last of the government rebate checks to tax payers, retailers were able to see some sales momentum this summer.

Retail industry sales for July—which exclude automobiles, gas stations and restaurants—rose 4.7% unadjusted over last year and increased 0.3% seasonally adjusted month-to-month, according to the National Retail Federation (NRF).

According to the U.S. Commerce Department, July total retail sales—which also exclude automobiles, gas stations and restaurants-decreased 0.1% seasonally adjusted month-to-month, but increased 4.5% unadjusted over last year.

"While discounters were the biggest beneficiaries of rebate checks, consumers were still spreading the wealth among other retailers," said Rosalind Wells, NRF chief economist. "Because most of the rebate checks have already been distributed, retailers will face increased challenges generating sales in the months ahead."

Sales for general merchandise retailers, including discounters, increased 0.3% seasonally from June and rose 6.4% over July 2007.