U.S. retail sales unexpectedly rise in June

The mighty U.S. consumer bounced back to life in June, adding to signs the U.S economic rebound is fully on track.

A surprise jump in retail sales was announced Friday....up 0.6 percent last month after a drop the prior month.

Economists were predicting another fall with government stimulus checks now mostly spent.

But with wages on the rise and trillions of dollars in savings, Americans are experiencing an increase in spending power.

Consumers have started to spend on goods again after the early days of the reopening diverted most of their cash to dining and entertainment.

Spending on services is only expected to accelerate as more Americans feel comfortable going back out again.

Sales at restaurants and bars were up 40 percent in June from the same last year.

So-called core retail sales, which corresponds directly to the consumer spending component in the quarterly gross domestic product, also bounced back to the tune of 1.1 percent.

Economists expect consumer spending, which accounts for more than two-thirds of U.S. economic activity, to have surged double-digits in the second quarter.

And with some households now receiving cash from the expanded Child Tax Credit program through the end of the year, economists expect Americans to feel empowered to keep on shopping.