Americans bought more gardening and sporting goods equipment, helping boost retail sales. As Fred Katayama reports, it's another sign the economy has picked up speed.
American consumers stepped up their shopping in June, snapping up everything from cars to building materials. Retail sales shot up 0.6 percent from May. It marked the third straight month of gains, and it was much higher than economists had expected. Year-on-year, sales rose 2.7 percent. The report suggests the economy has regained momentum. The gains were broad based. Garden equipment and building materials sales soared nearly 4 percent, the biggest increase in six years. Online shopping rose more than 1 percent, underscoring the shift in momentum from physical stores to the Internet. Sales fell in just two businesses: apparel and restaurants. Mercadien Asset Management's Ken Kamen is optimistic about the outlook for the consumer and retail stocks. SOUNDBITE: KEN KAMEN, PRESIDENT, MERCADIEN ASSET MANAGEMENT, (ENGLISH) SAYING: "There's been a lot of pent up demand. We've started to see this year increases in hourly wage growth, and we're also seeing employment that by most definitions, is a full number." Retail stocks were mixed. Home Depot rose in morning trading, but Amazon, Walmart and Target fell.