U.S. retail sales edge up 1.2 pct in July amid resurgence of COVID-19 cases

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WASHINGTON, Aug. 14 (Xinhua) -- U.S. retail sales inched up by 1.2 percent in July amid a resurgence of COVID-19 cases, following growth in the prior two months, the country's Commerce Department reported on Friday.

Retail sales saw a revised 8.3 percent drop in March amid COVID-19 shutdowns, followed by a revised record 14.7-percent plunge in April. As businesses gradually reopened across the nation, retail sales increased by a revised 18.2 percent in May, followed by a revised 8.4 percent growth in June.

Despite the rebound in the past three months, total retail sales for the May through July period were down 0.2 percent from the same period a year ago, the report showed, noting that the July figure is up 2.7 percent above July 2019.

Retail trade sales were up 0.8 percent from June, and 5.8 percent above last year, according to the report. Non-store retailers were up 24.7 percent from July 2019, while food and beverage stores were up 11.1 percent from last year.

"The details of today's retail sales report offer the latest evidence of the V-shape recovery in consumer goods spending," Tim Quinlan and Shannon Seery, economists at Wells Fargo Securities, wrote in an analysis.

The analysis, however, noted that for the overall economy, outlays on services are roughly twice as large as goods and "the recovery in services has been slower."

"The question now is to what extent those gains may prove fleeting as generous jobless benefits fade and as spending eventually shifts back into service categories," they added.

An extra 600-U.S.-dollar weekly unemployment benefits, approved by Congress in late March, expired at the end of July, but Democrats and Republicans remain deadlocked over the next round of COVID-19 relief.

Economists have warned that the delay in reaching a deal on the much-needed fiscal rescue package, coupled with a resurgence in COVID-19 cases -- which have hindered some states' reopening efforts -- could undermine the prospect of economic recovery. Enditem

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