WASHINGTON — Consumers and businesses went on a big- ticket spending spree in July, sending home, car and equipment sales soaring by the largest amount in years.
The sales, detailed in two government reports Wednesday, confirmed a subtle but marked shift in confidence about the economy. New- home sales jumped almost 10 percent from June, while orders for long-lasting goods including appliances, planes and computers rose nearly 5 percent in July, the third increase in the past four months.
“It looks like we’ve hit bottom and we’re now slowly trying to dig our way out,” said Nigel Gault, chief U.S. economist at IHS Global Insight.
Still, it remains unclear whether the growth can be sustained. Though the increases in housing sales and manufacturing last month were large, they came from extraordinarily low levels and were fueled by temporary government programs such as Cash for Clunkers and tax credits for home sales.
Sales of new homes surged to a seasonally adjusted pace of 433,000 in July from 395,000 in June, the Commerce Department said. Driven by falling prices, the fourth straight monthly rise was greater than expected.
