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Retail Sales surge in August

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Retail and food services sales surged in August, jumping 2.7 percent during the month in comparison to July’s decline of 0.2 percent, according to a U.S. Census Bureau advance estimate of U.S. retail and food services released Tuesday.

At $351.4 billion, sales still were down 5.3 percent from August 2008, and total sales for June through August 2009 were down 7.6 percent from the same period a year ago.

Auto sales, spurred by the Cash for Clunkers program, which launched July 27, helped increase retail numbers in August, according to a CNNMoney.com report. The auto sales index rose 11.9 percent compared with July.

Gasoline sales increased in August as well, rising 5.1 percent, while sales at clothing and department stores each rose 2.4 percent. Furniture store sales, however, fell 1.6 percent and building/garden equipment sales fell by 1.2 percent.

In comparison with August 2008, however, gasoline sales were down 26.7 percent and building/garden equipment sales were down 13.6 percent.

“We’ll be watching whether these core numbers will hold on to gains or give them back,” Adam York, an analyst at Wells Fargo Securities, told CNNMoney.com. “It’s unclear whether this can continue despite the weak labor market.”

See the full report.