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US consumers head to the shops in July

US consumers took to the shops in July spending more on goods ranging from cars to electronics, as sales at retail outlets rose a greater-than-expected 1.4%.

It was the biggest monthly increase since January, according to the Commerce Department, and well above the 0.8%  gain which analysts' were expecting.

Excluding sales of cars, retail sales rose 1%, which was the biggest rise since January.

Last month's gain in retail sales follows a 0.4% decline in June, which had been initially reported as a 0.1% decrease.

The healthy showing in retail spending, a major driver of the economy, comes after Federal Reserve policy-makers earlier this week decided to keep the target federal funds interest rate steady at 5.25% after more than a two-year run of rate hikes in a battle to curb inflation.