Retail, manufacturing point to firming economy

[WASHINGTON] Retail sales showed a broad-based gain in June, pointing to a gain in consumer spending that probably helped the US economy rebound in the second quarter.

Purchases increased 0.2 per cent after a 0.5 per cent advance in May that was larger than previously reported, Commerce Department figures showed yesterday. The reading fell short of the 0.6 per cent increase projected by the median estimate of 83 economists surveyed by Bloomberg, restrained by a drop among auto dealers. Demand climbed in nine of 13 major categories last month.

Consumers are more comfortable opening their wallets as a strengthening labour market lifts earnings. Higher wages give American households the wherewithal to withstand recent increases in food and petrol costs that had chipped away at buying power.