Resilient US Economy Shines Through Strong Retail Sales

US retail sales increased more than expected in July, driven by online purchases, dining out, and spending on hobbies, sporting goods, and clothing. The strong retail sales figures suggest that the US economy is continuing to expand in the third quarter, keeping a recession at bay. Economists at Goldman Sachs raised their GDP tracking estimate for the third quarter, citing resilient consumer spending. Despite the strong sales, economists do not expect the Federal Reserve to raise interest rates next month due to retreating inflation. The report also showed that import prices rebounded in July, but underlying imported inflation remained subdued. Overall, the report indicates that the US economy remains resilient, but there are concerns that spending could slow down towards the end of the year.