Sales at American restaurant and bars rising at faster pace
United State’s Commerce Department said that sales at restaurants and drinking places increased by 1.3 percent in July to $61.6 billion, which means Americans have been spending like crazy while eating out.
According to a Bloomberg report, this figure brought the three-month annualized gain to 25.3 percent, the fastest pace in figures going back to 1992.
“One possible explanation for the recent jump is that Americans are spending their extra cash from tax cuts on dining out. In addition, major restaurant companies have recently hiked menu prices to keep up with higher minimum wages and rent costs,” the Bloomberg report said.
However, some analyst fears that once the trend normalizes, the country’s overall retail sales will also suffer.
“Any mean reversion here would lead to a noticeably slower pace of retail sales in the coming months,” Sharif wrote in a research note that was cited in the same report.