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Retail sales up 0.4 percent
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September 12, 1997: 9:26 a.m. ET
Increase pushed August sales to $213.7B in third straight monthly rise
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NEW YORK (CNNfn) - August retail sales fell short of analysts' expectations and rose 0.4 percent in its third straight monthly increase, the U.S. Commerce Department said Friday.
The hike pushed sales to a seasonally-adjusted $213.7 billion in August, the government said. Economists had predicted sales would rise a more robust 0.6 percent.
By contrast, July's revised sales figures came out 0.9 percent higher, up from the 0.6 percent initially reported, in the largest monthly gain since February.
July sales were initially pegged at $212.1 billion, while the revised figure was $212.8 billion, the government said.
The bond market, which had braced for bad news, reacted positively immediately following the morning announcement. The benchmark 30-year Treasury bond was up nearly a point, pushing the yield down to 6.62 percent.
Sherry Cooper, chief economist with Nesbitt Burns Securities, said sales might have been influenced by the Teamsters' strike against United Parcel Service last month.
The job action against the shipping giant, which controls about 80 percent of the market, paralyzed many U.S. businesses.
"This is still a very strong retail sales report," Cooper said.
New car sales rose 0.8 percent to $52.1 billion after a 1.8 percent hike in July. Excluding auto sales, retail sales in August rose 0.4 percent.
Durable goods were up 0.7 percent in August to $87.5 billion. July's revised figure increased 1.3 percent.
Retail sales are among a string of economic indicators closely watched by the Federal Reserve for signs of inflation when it decides whether to raise interest rates. 
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