It's all in how you read it
Retail sales surge 1.8% on car sales; jobless claims dip
WASHINGTON (Reuters) — U.S. retail sales surged 1.8% last month as buyer incentives led to the biggest gain in auto sales since just after the Sept. 11, 2001, attacks, when carmakers the flag put in place zero percent financing deals, a government report showed Thursday.
A separate report showed a surprise drop in claims for jobless benefits last week that took a key gauge on the pace of layoffs down to its lowest level since late February.
July's retail-sales jump, which fell short of Wall Street forecasts, followed a similarly healthy 1.7% rise in June, the Commerce Department said.
Auto sales shot up 6.7%, their sharpest rise since October 2001, as Ford and DaimlerChrysler joined General Motors in extending employee discounts to all consumers. The unusual sales incentives led the department to alter the way in which it usually smooths the data for seasonal factors.
Excluding autos, retail sales rose a modest 0.3% last month — below forecasts for a 0.6% gain.