Retail Sales In U.S. Probably Rose For First Time In Four Months

Retail sales in the U.S. probably rose in July for the first time in four months, alleviating concern that the expansion was foundering, economists said before a report today.

The 0.3 percent increase in purchases would follow a 0.5 percent drop in July, according to themedian forecast of 85 economists surveyed by Bloomberg News. Another report may show prices paid by producers rose last month.

Improved sales at merchants such as Gap Inc. and TJX Cos. indicate American households are looking beyond the global economic slowdown as hiring improves. At the same time, joblessness in excess of 8 percent is keeping consumer spending from surging, consistent with the Federal Reserve’s view that economic growth will “remain moderate over coming quarters.”

The Commerce Department will release the figures at 8:30 a.m. in Washington. Economists’ estimates ranged from a decline of 0.2 percent to a gain of 0.7 percent.

The report will also show the retail sales category used to calculate gross domestic product, which excludes sales at auto dealers, building material stores and service stations, rose 0.5 percent in July compared with a 0.1 percent decline the prior month, according to the economists surveyed.

Note:Monthly Core retail sales of USA scheduled to release by 6.00pm IST.

Other Key Economic indicators to watch : Monthly PPI data at 6.00pm

                                                                 Monthly Retail Sales at 6.00pm