US retail sales rose in August for a second consecutive month, easing concern the economy will stumble in the second half of the year.
Purchases increased 0.4 per cent following a 0.3 per cent gain in July that was smaller than previously estimated.
Sales excluding automobiles advanced twice as much as forecast.
Demand at chains like Kohl's Corp. and Ross Stores Inc. climbed as more states had tax-free holidays and some merchants offered bigger discounts to lure back-to-school shoppers.
The December contract on the Standard and Poor's 500 Index fell 0.1 per cent to 1,115.3 at 8:44 a.m. in New York. Treasury securities rose, pushing the yield on the benchmark 10-year note down to 2.70 per cent from 2.75 per cent late yesterday.
Retail sales were projected to rise 0.3 per cent after a 0.4 perc ent gain previously reported for July.
Excluding auto dealers, purchases climbed 0.6 per cent, the most since March.
Eight of 13 major categories showed increases last month, led by grocery stores and service stations. The latter may reflect higher prices for gasoline.
Excluding autos, gasoline and building materials, which are the figures used to calculate gross
domestic product, sales advanced 0.6 per cent after a 0.1 per cent drop the prior month.
Spending increased 1.2 per cent at clothing stores and 0.4 per cent at general merchandise stores.
August retail sales figures were in line with company reports that showed an increase in sales at stores open at least a year.
BLOOMBERG