Retail Sales in U.S. Rise in Sign Economy Not Slowing as Fast as Fed Hoped

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Retail sales in the U.S. rose the most in six months in July, led by purchases of electronics and cars, suggesting the economy may not be slowing as much as the Federal Reserve anticipates.

The 1.4 percent jump, which exceeded forecasts, followed a 0.4 percent drop in June, the Commerce Department said today in Washington. A separate report from the Labor Department said the price of imported goods climbed 0.9 percent last month, after no change in June.

The report may make it harder for Fed Chairman Ben S. Bernanke to indefinitely forgo raising interest rates after suspending a two-year tightening campaign this week.

Consumer spending accounts for 70 percent of the economy, and the central bank is counting on slowing growth to damp inflation.