US Retail Sales Increased Less Than Expected in July

US retail sales increased less than expected in July and may slow further in the coming months due to a spike in new COVID-19 cases and a drop in unemployment benefits.

The US Commerce Department said retail sales rose 1.2% last month, down from a 8.4% advance in June.

Economists polled by Reuters had expected retail sales to rise 1.9% in July.

Strong retail sales are almost in the past now.

Coronavirus cases continue to spread across the United States, forcing authorities in some outbreak hotspots to either close activities again or suspend reopening. The respiratory disease has caused consumers to warn about going to places such as restaurants and shopping malls, which reduces spending.

Tens of millions of people lost a supplementary weekly unemployment benefit of $ 600 at the end of July, accounting for 20% of personal income, and helping people buy food and pay bills.

On Saturday, President Donald Trump signed a raft of executive orders, including an extension of the supplementary subsidy, but cut weekly payments to $ 400.