Washington, DC, August 11--Retail sales rose 1.8% in July as auto sales enjoyed the strongest growth in nearly four years, according to the Commerce Department.
Excluding a 6.7% hike in auto sales, retail sales increased 0.3% in during the month.
Economists had forecast an increase in total retail sales of 1.9% and an increase excluding auto sales of 0.6%.
Sales in May were unrevised at a 0.3% decline. June's sales were unrevised at a 1.7% gain.
Retail sales are now up 10.3% in July, verses 2004, for the fastest gain in 11 years. Excluding autos, sales are up 8.1% on a year-over-year basis.
Gasoline sales rose 2.5%. Excluding both autos and gas, retail sales were flat in July.
During the month, sales at furniture stores dropped 1.3%, while sales at building materials and hardware stores sank 0.4%. Sales at electronics and appliance stores increased 1%.
Department store sales fell 1%, while clothing store sales dropped 0.5%. Sales at leisure-time stores such as sporting goods and books rose 0.5%.
Sales at health and personal care stores increased 0.6%. Grocery store sales fell 0.1%, while restaurant and bar sales increased 0.2%.
