Retail sales rose 0.5 percent in July

WASHINGTON (AP) — Consumers spent more on autos, furniture and gasoline in July, pushing up retail sales by the largest amount in four months.

The gain could signal that Americans are a little more confident and help dispel fears that the country is in danger of toppling into another recession.

The Commerce Department said today that retail sales rose 0.5 percent last month, the best showing since a 0.8 percent advance in March. And the government revised sales higher in the previous two months. That suggests the economy was not as weak as previously believed.

The report is the government's first read on consumer spending for the July-September quarter. Consumer spending is always closely watched because it accounts for 70 percent of economic growth. But the mood of the consumer is of particular interest to traders right now.

A batch of poor data and a gloomy outlook from the Federal Reserve this week have made many more nervous that the economy could fall back into a recession. The Dow has lost nearly 1,600 points, or more than 12 percent, since July 22.